How does one prepare for the fiscal cliff?
By Kevin F. Clune, CLP
Unless you have had your head in the sand, everyone is aware of the threat of The Fiscal Cliff. There are just as many articles as opinions about the fallout of inaction.
Joanne Bamberger, blogger at Huffington Post wrote an article titled: “What Fiscal Cliff?”. In it she states:
“Despite the constant drumbeat of scary cliff talk, there is no such thing as a "fiscal cliff." Yes, we have a serious budget situation thanks, mostly, to the tax cuts given to us by former President George W. Bush, as well as the tinkering his administration did with the tax code.”
On the other hand, Thomas Kenny of About.com, warned in an article, "What is the Fiscal Cliff?"
"The cost of indecision is likely to have an effect on the economy before 2013 even begins. The CBO anticipates that a lack of resolution will cause households and businesses to begin changing their spending in anticipation of the changes, possible reducing GDP before 2012 is even over.”
What is one to think and, more importantly, what is the correct course of action? Since Christmas is upon us, I might suggest that we could find an answer in a popular holiday movie.
Most of us are also aware of the classic Christmas Movie, “It’s A Wonderful Life”, starring Jimmy Stewart as George Bailey, the manager of the family business, The Bailey Savings & Loan, in Bedford Falls. When George faces his own Fiscal Cliff and the possible loss of his business, he attempts to end his life but was saved by an Angel. In the end, he realizes that his life does have meaning in that his small Savings & Loan Business was instrumental in building homes and other businesses in their small town of Bedford Falls. The townspeople learn of George’s “Fiscal Cliff”, and all come to his aid.
Unfortunately, most of us are not living a story book life where Angels intervene to save us from destruction. Just as all the family and friends of George Bailey came to his aid, we can also respond by using any power we possess to influence the outcome. Once the decisions are made, however, we will need to adapt to any changes that are implemented, and find our own answers.
Will we need to create new and different products and/or change the way we market our services? Maybe asking the difficult questions will yield the path forward.
As 2013 dawns, I trust the innovative spirit and creative talent of entrepreneurs to adapt and survive.
What do you think?
Kevin F. Clune, CLP
Clune & Company LLC
