The following is excerpted from a 15 November 2012 commentary by Peter G. Hall of Export Development Canada.
It’s coming, and it’s big. The US economy is careening toward the so-called fiscal cliff at a frightening pace, and it’s creating a lot of concern. With the election now decided, will legislators seal a deal that allays these fears, or will political sclerosis drive America – and the world – to the precipice?
If it did, it would be a shame. Consumers – 70 per cent of the US economy – are spending at a rapid clip while simultaneously mending their personal finances. Housing markets have turned the corner – residential construction is up 35 per cent, and yet has a long way to go before it hits normal levels. Even shattered US consumer confidence seems to be on the mend. At the same time, corporate America is in great shape: profits are near an all-time high, and businesses are sitting on a $5.7 trillion mountain of cash and near-cash. Is the present whiff of recovery incentive for action?
This article is available in its entirety at:
http://www.edc.ca/EN/Knowledge-Centre/Subscriptions/Weekly-Commentary/Pages/careening-toward-the-fiscal-cliff.aspx
Topic(s)
International Trade and Border Management
Information source
Canadian News Channel
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