|Source:Brookings Institution- Robert Greenstein is the head of the Progressive Washington think tank the Center On Budget & Policy Priorities.|
"Robert Greenstein, Center on Budget and Policy Priorities: The possibility that legislative inaction could lead the nation's economy back into a recession next year, could be the impetus to get both sides to agree to some sort of deal.
On July 16, 2012, the Budgeting for National Priorities project at Brookings hosted Senator Patty Murray (D-Wash.), member of the Senate Budget Committee, former chair of the bipartisan Joint Select Committee on Deficit Reduction and a member of Senate Democratic leadership, for a conversation on the upcoming fiscal cliff, how she views the path to a balanced and bipartisan approach to avoiding it, and what steps she believes can be taken on the expiring Bush tax cuts and the scheduled sequestration. Following Senator Murray's keynote address, a panel of Brookings experts reflected on the current budget situation and prospects for a "grand bargain" to rein in the deficit and spur economic growth."
From the Brookings Institution
The reason why we have a so-called fiscal cliff and sequester headed to the American economy and U.S. Government early next year, is because House Republicans wouldn't agree to any new revenue, including even cutting expensive tax loopholes, that only benefit investors and businesses, in these deficit reduction talks.
House Republicans idea of new revenue is for more economic growth. Their idea for more economic growth is cut more taxes and regulations on investors and businesses, without paying for them, saying that those cuts would lead to new economic growth and would pay for themselves. Which is what's known as supply-side-economics, also known as borrow and spend economics.