fiscal cliff

Ah, Washington. The good news is that our national leaders saved our butts (for the moment) from bottoming out off the “fiscal cliff.” The bad news is: Watch your head—it’ll soon come crunching up against another unnecessary “debt ceiling” crisis. The most important Good vs. Bad News about the New Year’s Day cliff dive is that the Ugly—the prospect that Congress’ failure to raise the debt ceiling could actually cause the United States to default on its international debts with genuine economic consequences—is now put off, but only until March.

“Media elites have convinced themselves that there is a crisis in Social Security,” said Eric Kingson, a professor of social work at Syracuse University and co-chair of the advocacy group Social Security Works. Kingson, who served as a policy advisor on presidential commissions on the issue in the 1980s and ’90s, said there is indeed an increasing crisis around adequate funding for retirement in America. “But they [journalists] focus on the most conservative framing of the crisis,” he said. In reality, Kingson added, “Social Security is the one bright spot” in the federal government.

Will the U.S. economy go over the “fiscal cliff” after New Years Day? If so, what will that mean to the country’s most financially vulnerable people? Former White House economic advisor Jared Bernstein of the Center on Budget and Policy Priorities (CBPP) told reporters on a national telephone briefing Thursday, organized by New America Media and CBPP, that he believes Democrats and Republicans will take the budget negotiations to and possibly over the cliff’s edge.