The World Bank suggests that if the United States fiscal cliff is not averted it would reduce U.S. growth by 2.2 percent and global growth by 1 percent. It does not stop there as the World Bank also mentioned that we could see a 5 percent decline in U.S. import volumes, a 6 percent decline in oil prices, a 2 percent drop in metal prices, and a 1 percent drop in food commodity prices.
The stakes are high and the world would be the victim should the Republicans and Democrats not come to a solution regarding our debt. U.S. citizens, regardless of party affiliation, want to see progress. Anything short of that would cost us dearly -- to avoid solving this problem head-on could cause a ripple effect impacting real GDP of high income and developing countries in 2013. Not to mention this would again paint the U.S. as the 400-pound gorilla who can’t climb a tree to find its supper.