Talk of the Town: Over the Cliff

Ground feel unsteady under your feet? It might be that you’re standing at the edge of a fiscal cliff.

According to Politico, “If Congress doesn’t take action by the end of the year, a package of tax cuts adopted during George W. Bush’s administration expire while deep spending cuts kick in. If that happens, the economy would go over a ‘fiscal cliff.’” While a steep reduction in federal spending could help shrink the budget deficit, less spending also means even less stimulus to our weak and struggling economy.

Recent reports have shown Members of Congress in heated debate over the issue, but expectations are low for any resolution occurring before the November 6 elections.

As we noted in Memo to Members recently, there is another theory: it’s not a fiscal cliff, it’s a fiscal slope. According to the Center on Budget and Policy Priorities, chances are, even if a deal is not reached by the beginning of 2013, Congress is likely to work something out eventually- meaning that consumers and businesses will have enough confidence to keep spending. Democrats have shown a willingness to test that fiscal slope theory, if it means the richest 2% of Americans would pay their fair share of taxes.

Do you believe we’re at the edge of a cliff, or a slope? What action do you think Congress needs to take? Let’s talk about it in the comments.

News Round-Up: Where the Rubber Meets the Road

Republican presidential candidate Mitt Romney’s recent off-mic remark that he might eliminate HUD if elected president sparked much speculation in the news about what would happen if that agency were to disappear. Advocates agree that for the 2.5 million people helped by HUD-administered housing aid, HUD has a very meaningful impact.

Meanwhile, a profile of new NLIHC board member Emma “Pinky” Clifford shows the great need for decent, affordable housing in rural America and on tribal lands.

Of about 3,000 homes in Shannon County on the reservation in 2010, nearly 400 did not have full plumbing, and 330 did not have full kitchens, according to the U.S. Census Bureau. More than half of the homes — 1,875 — used some form of bottled gas for heat, and only 681 homes were connected to electric or utility gas heat. Most of the homes were worth about $18,600, according to the Census Bureau, and 54 percent of Shannon County residents lived below the poverty level.

Even when the need is so great, and the obstacles to meeting it can be so challenging, Pinky says she remains undaunted. “‘I love housing,’ she said. ‘It’s hard work, but when you see people in homes, and they’re in a safe and affordable home … it’s worth it.’”