Fiscal cliff and austerity measures, are they not one in the same?

Yesterday it hit me as Angela Merkel’s much heralded arrival in Greece was announced through the various media outlets. Ok, maybe I am slow, but is there a huge difference in the Fiscal Cliff and Austerity measures.

Let’s take a look:

• Raise Investment related taxes….Check
• Increases in Employment related taxes…Check
• Decrease government spending…Check
• Possible increase in an already elevated unemployment rate…Check

While I am not saying the US is in the same economic condition as Greece, Spain or Italy, what I am saying is what my parents always told me as a kid

“When you point your finger at someone, you have many more pointed back at yourself…so be careful, and think before you point!”

Just as we (present party included) have many concerns on the pending US fiscal cliff, it is very reasonable to see how austerity measures may produce the same concerns.

While there is not an easy way out, there are certainly ways out and we will get there one way or another, it just may not be as easy as we all expect.

Hat tip Colonel J, my international running buddy for the original thought!

Have a Great Day!

JK

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