Hurry Up and End America's Financial Mayhem
Published in Nikkei
(Japan) on 3 March 2013
by (link to original)
(Japan) on 3 March 2013
by (link to original)
Translated from
by Kenny Nagata.
Edited by Gillian Palmer.
Without a compromise in comprehensive financial reform from the opposition party in America, there will be a mandatory $1.2 trillion cut in expenditures over the next 10 years. There are fears that these cuts will come at inconvenient times for a wide range of fields like national security or transportation.
In 27 days, the provisional budget for 2013 fiscal year (Oct. 12-Sept. 13) will expire. The U.S. Congress should do everything in its power to settle the mayhem and overcome political confrontation to work toward financial management.
In order to protect from the sudden tightening of public funds in January 2013, the opposition party moved to extend income tax cuts for all but the wealthy. The mandatory spending cuts were frozen for two months, but they have since not been able to compromise on an avoidance strategy.
It will take some time for specific effects to occur, such as temporary layoffs of government employees. The opposition party has continued discussions to stop the mandatory cuts; the market reaction has been limited.
However, if they don’t break the deadlock, difficulties will arise that affect the citizens as well as America’s security, and can begin to control the American economy. President Obama has stressed that growth will decrease by 0.5 points and 750,000 jobs will be sacrificed.
The 2013 provisional budget will expire and leave the risk that there could be closures for government bodies in America. There is also a fear that they could fall into default if they don’t come up with an agreement on how to deal with the national debt by the middle of May.
The American people will not allow this kind of dangerous situation. If something were to change the road to recovery of the American economy, it could strike a blow to the global economy, including Japan.
First, stop the mandatory expenditure cuts and make sure that current expenditures and national debt do not become obstacles. Along with controlling the pace of fiscal restraints of the economy, they need to strike a mid- to long-term strategy of balance between increased taxes and spending cuts. The opposition party needs to show a specific strategy very soon.
There is a deep opposition between the ruling party (Democrat) that is advocating raising taxes even higher on the wealthy and the opposing party (Republican) that is against raising taxes and wants to balance the budget with expenditure cuts alone. We all suffer if the political strife continues and they prolong this “government that can’t make any decisions.”
In 27 days, the provisional budget for 2013 fiscal year (Oct. 12-Sept. 13) will expire. The U.S. Congress should do everything in its power to settle the mayhem and overcome political confrontation to work toward financial management.
In order to protect from the sudden tightening of public funds in January 2013, the opposition party moved to extend income tax cuts for all but the wealthy. The mandatory spending cuts were frozen for two months, but they have since not been able to compromise on an avoidance strategy.
It will take some time for specific effects to occur, such as temporary layoffs of government employees. The opposition party has continued discussions to stop the mandatory cuts; the market reaction has been limited.
However, if they don’t break the deadlock, difficulties will arise that affect the citizens as well as America’s security, and can begin to control the American economy. President Obama has stressed that growth will decrease by 0.5 points and 750,000 jobs will be sacrificed.
The 2013 provisional budget will expire and leave the risk that there could be closures for government bodies in America. There is also a fear that they could fall into default if they don’t come up with an agreement on how to deal with the national debt by the middle of May.
The American people will not allow this kind of dangerous situation. If something were to change the road to recovery of the American economy, it could strike a blow to the global economy, including Japan.
First, stop the mandatory expenditure cuts and make sure that current expenditures and national debt do not become obstacles. Along with controlling the pace of fiscal restraints of the economy, they need to strike a mid- to long-term strategy of balance between increased taxes and spending cuts. The opposition party needs to show a specific strategy very soon.
There is a deep opposition between the ruling party (Democrat) that is advocating raising taxes even higher on the wealthy and the opposing party (Republican) that is against raising taxes and wants to balance the budget with expenditure cuts alone. We all suffer if the political strife continues and they prolong this “government that can’t make any decisions.”