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US "Super Committee" fails to solve deficit problem

11-24-2011 08:49 BJT

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Questions are being raised about the ability of America's political establishment to manage painful but necessary changes in order to deal with its spiralling deficit problem. The so-called "Super Committee" has failed in its goal of reaching a deal to reduce government deficits by at least 1-point-2 trillion US dollars over ten years. Republicans and Democrats seem to be wide apart on the right balance of spending cuts and tax increases necessary to begin tackling long term debt issues.

The "Super Committee" of 6 Democrats and 6 Republicans was unable to agree on a package of proposals to trim at least 1.2 trillion dollars over ten years. Former Presidential candidate and committee member John Kerry says he’s deeply disappointed...

John Kerry, Senator of Massachusetts, said, "We had an opportunity to be able to show the world that the Congress of the United States knows how to govern and we had an opportunity to prove at a time that Europe is in a particular fragile economic situation, that we were ready to show the way forward and even as we did so to make America a safe haven for investment and for money."

The hope was for a compromise in which Democrats agreed to begin addressing run-away government healthcare spending, while Republicans would agree to some tax increases which they traditionally oppose.

 

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The "Super Committee" of 6 Democrats and 6 Republicans was unable to agree on a package of proposals to trim at least 1.2 trillion dollars over ten years.

Barack Obama, US President, said, "There is still too many Republicans in Congress who have refused to listen to the voices of reason and compromise that are coming from outside of Washington. They continue to insist on protecting the 100 (b) billion dollars worth of tax cuts for wealthiest two-percent of Americans at any cost "

Republicans and other critics of President Obama say he should have been more involved in the Super Committee’s negotiations and suggest there’s been an overall failure of leadership.

Alex Brill, Research Fellow of American Enterprise Institute, said, "I think it’s going to take an election and it’s going to take some new leadership, including new leadership from the administration, more of a priority by the President, to address our fiscal challenges before we start to see real policy change."

The failure to reach agreement will now trigger automatic cuts of $1.2 trillion, called "sequestration", which will begin to bite in January of 2013, hitting defense budgets hardest.

Michael O'Hanlon, Senior Fellow of Brookings Institution, said, "So the question becomes how do you protect the full sweep of top priority interests at less cost? And when you phrase it that way, which I think is the right way to look at it, it becomes hard to cut more than $400 billion in ten year terms."

Congress could act before then to forge some kind of solution, but hopes are not high because America goes to the polls in November of 2012 and the drawn-out election process is already heating up.

Editor:Zheng Limin |Source: CNTV.CN

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