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Yesterday, the House of Representatives passed the fiscal cliff bill and the president will sign it into law today. These acts may cause some of us to breathe a sigh of relief, but bigger long term problems still exist. Those individuals receiving long term unemployment benefits gained the most from the passing of this bill, but who lost the most? Was it those earning over $400,000? What about the middle class? The biggest losers are people that believe the passing of this bill will help them with their financial problems.

This fiscal cliff mess was overhyped and promoted so heavily that many people began to believe a deal would save us all from certain financial ruin. Numerous analysts claimed the U.S. economy would fall into another recession or depression without some miracle bill. Some even went so far to say the dollar would collapse. But were we ever truly going to go over the fiscal cliff? I refuse to believe that would've happened. Nevertheless, the hype machine sold these doomsday scenarios, and as a result, the effect of the solution has been exaggerated. Millions of people believe their personal problems have been solved with this new bill, but reality is far different from fiction. This new bill has only bought the nation more time to fix a complex debt problem. It will not improve the job market. It will not lower student loan debt and outstanding mortgage debt. This bill won't boost the small business sector or stimulate a modern economic boom. These are the real problems that must be addressed before any of us can really believe this economy and our chances of overcoming personal financial problems have improved.

The government and private citizens of this great nation must overcome their debt addiction before we can all breathe a sigh of relief. Once we all accept that a massive downsizing is necessary for real economic growth, the nation will begin to heal. No one bill signed by congress will ever do this for us. This change requires a change in perception and attitude. Without this change we might see that recession economist were so worried about. Hopefully in the next two months we will see congress pass legislation that will help us all work towards less debt dependency. Our dollars are depending on it.

 


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