US Deficit Reduction Committee fails to reach deal

vivatifosi

Being reported as breaking news now. I think someone like CNN suggested this would happen yesterday, but yet more market turmoil due methinks.

Reuters:
http://www.reuters.com/article/2011/11/21/us-usa-debt-supercommittee-idUSTRE7AK0AF20111121

With the intensifying 2012 election campaign stoking already bitter partisanship in Washington, the U.S. Congress will be hard-pressed to reform expensive government benefit programs and an archaic tax code that are seen as the keys to improving the country's fiscal health.

Given the complexity of passing such legislation through Congress, it could even be 2014 before real progress is made.

That timetable could test the patience of global financial markets that so far have been willing to continue investing heavily in the United States as Europe grapples with a spiraling debt crisis.

MacMickster

In the run-up to the presidential election I think that the world will be presented with 2 very polarised views on the way forward for the US economy, and American voters will be faced with a stark choice. The tea party influence ensures that there is unlikely to be any compromise on a middle way.

The markets will be faced with uncertainty about the path that the US will take. Investors may just act like rabbits caught in the headlights and take very little action, or we could see almost daily turmoil over the next year with the release of each new opinion poll.

RJP33

It's no surprise, while tax increases long term don't make sense the Republicans position on this is ridiculous. It's a crisis situation and asking well off people to pay more for a couple of years will not damage the economy. Idealogy shoudl go out of the window.

Read somewhere that the Bush tax cuts for the 'wealth creators' are responsible on their own for 1/3rd of the deficit.

Things like this are why Obama will probably be re-elected.

gailey_2

Im not so sure

read about their scary 9trillion debt seems too big to contemplate, wonder what they spent it all on?

Problem is democrats like labour all about spending and financial stimulus which they operated whilst most went for austerity and its failed.

The tea party are pychos.

The republicans very wealthy mostly.

Theres such a gap between the poor and the rich over there.
They dont realy have a huge welfare state to support.

obamas been really dissapointing im not keen on him.
He annoyed me over the bp thing.

purch

They dont realy have a huge welfare state to support.

Unfortunately another urban myth that isn't really correct.

wonder what they spent it all on?

Medicare spending was $ 523,000,000,000 in 2008, and Medicaid was $ 204,000,000,000 :eek:

Wookster

purch wrote: »

Medicare spending was $ 523,000,000,000 in 2008, and Medicaid was $ 204,000,000,000 :eek:

America spends 16% of its GDP on health and yet 15% of the entire population is not covered at all.

Contrasted with the UK where ~8% of GDP is spent on health and the entire population is covered (with varying degrees of success).

If the US doesn't get this, and other items sorted they are going to end up bust.

gailey_2

Wookster wrote: »

America spends 16% of its GDP on health and yet 15% of the entire population is not covered at all.

Contrasted with the UK where ~8% of GDP is spent on health and the entire population is covered (with varying degrees of success).

If the US doesn't get this, and other items sorted they are going to end up bust.

I dident realise they spent that much on healthcare assumed 90-95%would have health insurance as most have it through their employers.
It was obama who pushed through reforms to spend more on healthcare.
Makes nhs look better but always would be wildly different ration to gdp as we have less people and smaller economy than the usa.

I know unemployments high over there but in states they get 99weeks jsa then thats it , they get foodstamps.

unsure if they get housing benefit but they certainly dont have same benefit culture we have here!

see things on tv about foodbanks and some cities without street lights at night .

Think the majority of their higher education system is privatly funded.

On tv their poor seems pooer than here.
teen parents dont get given council homes.

I know there was stimulus but baffled what they spent it all on.

I know they recapitilised their banks tarps but think all that was paid back and wall street is business as usual.

purch

I know unemployments high over there but in states they get 99weeks jsa then thats it

FUTA benefit varies from State to State.

The shortest minimum period it is paid is just 4 weeks, but that is onlyone State, the longest minimum period it is paid is 26 weeks in 12 States. The average minimum period across the whole of the U.S. is 14.5 weeks. Most States have a maximum period of 26 weeks too, but Washington and Massachusettes pay out for a maximum of 30 weeks.

FUTA is generally paid at a rate between 50% and 70% of an average of the 3 previous quarters earnings of the employee, depending on the State where you claim. If you work for a company that has branches/offices in multiple States an employee can make a claim in any State they wish, which in practice means they often choose the State with the best benefit scheme.

There is also a scheme where eligible employees can claim extended benefits, whereby they get 50% of what they previously received for a further period, up to a combined maximum of 39 weeks.

Yet another "urban myth" is proven incorrect.