Chart of the Day
Posted at 10:15 a.m. on Dec. 27, 2012
– The Wall Street Journal charts data showing that all the likely outcomes of the “fiscal cliff” negotiations will result in slower economic growth and job growth, but a reduction in the national debt.
“Most consumers would start to pare their spending after receiving smaller paychecks due to higher payroll-tax withholding. Income-tax refunds for 2012 could be delayed while the Internal Revenue Service programs its computers to account for tax changes. Government agencies could start cutting back, hurting employees and suppliers. Many other employers likely would slow hiring or cut jobs. And investors could eventually look at those risks and send stocks lower, threatening a downward spiral in consumer and business spending.”