Markets rise, but business sees missed chance in ‘cliff’ deal
January 2, 2013
Economists and business groups say the “fiscal cliff” deal will provide some help to the economy, but is overall a missed opportunity to put the nation’s fiscal health on track.
While stocks soared Wednesday on news of the deal and the Dow Jones closed the day up 308 points, business leaders expressed disappointment Congress and the White House again put off work on a significant deficit-cutting deal.
A few experts even expressed worry that an opportunity like the looming tax hikes and spending cuts that made up the fiscal cliff will not come again, and that a spring battle over raising the debt ceiling will carry significant risk but fail to create the kind of pressure needed to force policymakers to make political tough decisions to cut spending, raise taxes higher or reform entitlements.