On February 29, 2012 in testimony before the House Committee on Financial Services, Federal Reserve Chairman Ben Bernanke warned that:
“Under current law, on January 1st, 2013, there is going to be a massive fiscal cliff of large spending cuts and tax increases. I hope that Congress will look at that and figure out ways to achieve the same long run fiscal improvement without having it all happen at one date.” [view clip here].
January 1, 2013 brings to a head this stand-off between the Republican majority in the House, the Democratic majority in the Senate, and the President, over fiscal policies and how to control the federal deficit and debt. The impasse between the two parties may extend beyond the January deadline, as it involves different approaches to spending cuts and revenue increases. Learn about the positions of the two parties, the Speaker and the President by watching C-SPAN videos, reading related articles and using our lesson plan about the fiscal cliff. Then participate in a deliberation in your classroom regarding the possible short and long term solutions to the “fiscal cliff” and budget impasse.