what is the positive and negative side of fiscal cliff in USA?


3 Answer(s)


positive:
- it forces the govt to contains the expense.
- it forces the govt to increase the revenue from taxes.

negative:
- it is creating uncertainty in the financial markets so stocks and options are taking hit.
- due to uncertainty business are not ready to spend because business don't spend unless they are very clear about the direction of economy.
- if no agreement reached in next 24 hours it will have major impact on US economy and could cause recession.


if the agreement reaches within 24 hour the also USA economy go in to recession in short term as the consumer in short term dont have enough money due to huge tax cut

Thanks Yasar. Good answer.