New agreement can't avert cliff
Updated: 2013-01-04 20:21
The agreement passed by the US House of Representatives will not solve the "fiscal cliff", the core issue of which is the partisan politics of the country, according to an article from the People's Daily. Excerpts:
Republicans demand cutting expenditures without raising taxes, while Democrats intend to raise both expenditures and taxes.
The passing of the new agreement suggests the Obama administration has learned lessons from his reelection. The large numbers of middle and low-income people, immigrants and women are Obama's typical voting blocs. The United States financial crisis not only reflects the widening income gap in US society, but has also sparked a discussion on the rich shirking their obligations.
The traditional middle class has gradually been polarized, with the majority classified as low-income. As for the upper middle class, who have entered the rich club, the decision to raise taxes on them may meet more resistance than before.
It is rare for Democrats — known as representatives of the poor — and Republicans — known as representatives of the rich — to both make decisions that conflict with their traditional stances.
The new agreement means Obama has taken his initiative in raising taxes. Yet, he better prepare for pressure from Republicans for cutting expenditures.
It is believed the negotiations on the debt ceiling and expenditure adjustments will be fierce. In this sense, the "fiscal cliff" problem is far from solved.