David Walker to Congress: ‘No Deal, No Break’

Tuesday, 04 Dec 2012 10:42 AM

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Lawmakers should hunker down and steer the economy away from the fast-approaching fiscal cliff and forget about taking recesses until the problem is solved, said David Walker, CEO of the Comeback America Initiative, which promotes fiscal reform and responsibility.

Lawmakers are digging in their heels as they negotiate a way to steer the economy away from the fiscal cliff, a combination of tax hikes and spending cuts due to take effect at the same time with the close of this year.

The nonpartisan Congressional Budget Office has said failure to deal with the fiscal cliff could tip the country into a recession next year.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

Longer-term fiscal imbalances need addressing as well.

Sticking points include Democratic proposals to let tax breaks expire on the wealthy, which counter Republican calls to focus more on capping deductions and cutting spending.

“We’ve got a fiscal cliff now. We have the fiscal abyss next year. We need to say, ‘don’t come home — no deal, no break.’ Members should be in Washington at least five days a week like every other American and not leave until they deal with the fiscal cliff this year and until we get a grand bargain next year,” Walker told CNBC.

“These people get off seven times more days than the typical American and that is outrageous.”

“The sad thing is, we’re talking about politics versus policy. It would be irresponsible to allow the fiscal cliff to occur. We’re talking about who is going to get a political advantage, who is going to be able to save face.”

Ratings agencies, meanwhile, are taking note of the United States and the steps it is taking to avoid what many see as a preventable recession.

Fitch Ratings earlier said policies — or lack thereof — used to avoid the fiscal cliff pose the greatest risk to United States in 2013.

“While Fitch expects continued slow economic and revenue growth for 2013, the fiscal cliff is a significant near-term threat to that forecast,” said Laura Porter, managing director at Fitch Ratings.

“The risk that the fiscal cliff presents to the overall economy is the biggest concern for state credit, as state revenue systems quickly reflect changing economic conditions.”

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

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