An opportunity for politicians to do what they do best: get on TV and scare the bejeezus out of people.
Boehner and Obama got some quality air time on TV while stocks crashed because they can't reach a deal on The Fiscal Cliff.
by Mr. R0ntastic November 10, 2012
*noun*, efforts by the government to intentionally run a deficit in order to stimulate the economy during a recession. Loosely associated with Keynesian economics.
According to basic economic theory, recessions occur because there is a basic mismatch between aggregate demand and potential output. One approach for solving this is for the government to buy more goods and services than it has revenues to cover, thereby creating conditions in which effective demand is greater than the stock of goods currently in business inventory (given recessionary prices).
Under a stimulus, the jolt of extra money in circulation creates inflation, which has the effect of lowering real prices. Customers then respond to the {de facto} price reduction by buying more, which leads to more hiring, thence to more effective demand, thence to economic recovery.
Another reason fiscal policy stimulates the economy is that the private sector is not investing or consuming its own output. Increased taxes would simply reduce private consumption, so those cannot be increased; but spending is increased to fill the breach.
According to basic economic theory, recessions occur because there is a basic mismatch between aggregate demand and potential output. One approach for solving this is for the government to buy more goods and services than it has revenues to cover, thereby creating conditions in which effective demand is greater than the stock of goods currently in business inventory (given recessionary prices).
Under a stimulus, the jolt of extra money in circulation creates inflation, which has the effect of lowering real prices. Customers then respond to the {de facto} price reduction by buying more, which leads to more hiring, thence to more effective demand, thence to economic recovery.
Another reason fiscal policy stimulates the economy is that the private sector is not investing or consuming its own output. Increased taxes would simply reduce private consumption, so those cannot be increased; but spending is increased to fill the breach.
I think it is possible that fiscal policy will have even more 'oomph' in this situation," Christina Romer, who heads the Council of Economic Advisers, told an economics conference.
"When households and businesses are liquidity-constrained by reduced lending, any money put in their pockets is more likely to be spent," she said.
--Reuters, "White House's Romer: Stimulus may pack more punch" (3 March 2009)
"When households and businesses are liquidity-constrained by reduced lending, any money put in their pockets is more likely to be spent," she said.
--Reuters, "White House's Romer: Stimulus may pack more punch" (3 March 2009)
by Abu Yahya March 4, 2009
A Natural Resource found on the Pregnant Human Female, Used during
harsh economic times... to replace cow milk.
harsh economic times... to replace cow milk.
Yo.. We just ran out of cow juice..
Can i come over your house and express some milk from your old ladies fiscal tits?
Sure but ya gotta pay double she's runnin' low...
Can i come over your house and express some milk from your old ladies fiscal tits?
Sure but ya gotta pay double she's runnin' low...
by divewave January 1, 2013
the gap between revenues and expenditures for a government (over a given period of time); often referred to as an internal deficit or public deficit.
The public deficit accumulates over each time period (usually a year) into what is known as the public debt.
According to Keynesian and Neo-Keynesian economic theory, fiscal deficits are usually the most effective tool for stimulating economic activity; the actual choice of how the money is spent is less important.
The public deficit accumulates over each time period (usually a year) into what is known as the public debt.
According to Keynesian and Neo-Keynesian economic theory, fiscal deficits are usually the most effective tool for stimulating economic activity; the actual choice of how the money is spent is less important.
In the USA, most states are not allowed to run fiscal deficits. In other federal republics, such as India and Argentina, they are allowed and frequently account for much of those countries' internal deficits.
by Abu Yahya February 15, 2009
Noun. A game in which the first person to touch a bill, such as 2013 budget, loses and has to give up something they want to pay for it.
Can also be played with electrical bills, hookers, and bar tabs. It is legally binding.
Can also be played with electrical bills, hookers, and bar tabs. It is legally binding.
Person A: Did you hear that that Boehner guy in the Republican party is still refusing to cooperate with President Obama even though it makes his entire party look worthless?
Person B: Don't worry, this is just fiscal brinksmanship. He'll agree to something at the last minute.
Person A: But what if he doesn't?
Person B: Then, I guess we're fucked.
Person B: Don't worry, this is just fiscal brinksmanship. He'll agree to something at the last minute.
Person A: But what if he doesn't?
Person B: Then, I guess we're fucked.
by Easy Kompany December 30, 2013
When the Government plans a loophole to miss the deadline for the Fiscal Cliff just to gain two more days to make a decision, and still no decision is made.
"They've been talking about the Fiscal Cliff for days, I'm tied of hearing about it!"
"Yeah, no kiding, it's more like a Fiscal Cliffhanger."
"Yeah, no kiding, it's more like a Fiscal Cliffhanger."
by Judai Yuki January 2, 2013
A word that penny-pinchers use to defend their frugality.
A.K.A. Cheap!!
(origin: somewhere in Canada's capital)
A.K.A. Cheap!!
(origin: somewhere in Canada's capital)
by Jeanne August 26, 2004