A critical time has come for the American political and economic system. This conundrum is known as the Fiscal Cliff. If a budget agreement is not reached by December 31st, then we could see a severe tax increase and spending decreases and maybe even another recession. Stubbornness among the parties in Congress is certainly not helping to solve the problem. This political “competition” leaves many Americans frustrated with their government. In order for a deal to be reached some Republicans will have to compromise and agree to cooperate with the tax increases that will be contained in the agreements. It is essential that the two sides agree and that they put the one-upmanship aside for the good of the American people. Medicare and the defense budget will see big spending cuts, and the middle and upper classes can expect a drastic tax increase if nothing is resolved. The Republicans have proposed to extend the Bush tax cuts, but that is highly unfavorable amongst the Democrats. On the other side, the Democrats have been pushing for spending decreases, which yet again are unfavorable to Republicans . (I don’t think this is right) No matter what each side proposes, one thing will definitely be true: one side will have to settle with a compromise. The Obama administration has expressed that they are willing to go over the fiscal cliff if the Republicans continue to refuse to back down from their opposition to raising rates for wealthy Americans. Looking over the cliff, our politicians need to decide what matters more: the people, or politics?