John Williams and other responsible economists say America's already in one. Its economy is in worse shape than acknowledged. Deeper recession is likely. Protracted Main Street Depression already affects most ordinary households.
Fed policy doesn't stimulate economic growth. Tax increases, planned budget cuts, and force-fed austerity assure much tougher times ahead.
Financial Times (FT) contributor Martin Sandbu said "Small deal will deliver more subpar growth."
"More economic damage" was caused by Washington's inability "to decide and stick to policy. This uncertainty, which leaves businesses preferring to hoard cash rather than invest, is the chief cause of the disappointing US performance in the past two years."
"The folks in Washington" legislated more of the same.
Separately, the FT said "Fresh stand-off looms after US cliff deal."
"Far from ending (America's) budget battles," congressional action "simply sets the stage for fresh confrontations (ahead) over the deficit and economic policy."
Tough decisions were delayed. Congress always operates this way. Hold the champagne, said Foreign Policy's David Rothkopf. House passage yesterday starts "the countdown to the next crisis."
A much greater one awaits. Congressional legislation and what's planned assure more debt and taxes.
All working Americans face tax hikes. It's the first time in 20 years. Their impact is economically negative. Average increases are as follows:
For $50,001 - $75,000 income earners: $822 annually.
For workers making $100,001 - $200,000: $1,784.
For people earning $200,001 - $500,000: $2,711.
For $500,001 - $1 million income earners: $14,812.
Super-rich elites making over $2.7 million will pay on average $443,910 more.