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Cramer: Neither Dems nor GOP Get This

"It hit me last night," said Jim Cramer, "why I'm so annoyed and frustrated by the fiscal cliff talks between Boehner and Obama."

"Neither man understands the consequences of what they do on the American business public. That's because, in many ways, the business public is not represented by either person."

After reviewing the latest commentary from both parties, Cramer is convinced that the lawmakers are blind to a few key points.


Republicans Listen Up

"For the GOP it's the worries about the small business man and how much his motivation is being hurt by government tax policies."

Cramer said that theory is completely misguided.

"When you set up a small business you aren't worried about taxes. You are worried about customers," Cramer explained. "Customers are the lifeblood of why you are successful. If you are worried about tax rates you are going to fail. If you even consider tax rates as a reason to start a business or not, you shouldn't start it. Don't' waste your time. Stick to your day job.

Rather than focus on small business taxes, Cramer wants the GOP to focus on small business customers and the current standoff is no good for customers.

Read More: Scaling the Abyss - 9 'Buys' if Nation Falls Off Fiscal Cliff

Butch Martin | Getty Images

Democrats, Hear This

Cramer finds the Democrat's focus equally dismaying.

"They argue that people who pay their fair share of taxes aren't helped enough by government programs."

However if these programs leave our government unable to pay its bills, there will come a time when we have to do what Spain did and cut back all of our social programs radically.

"Without spending cuts now, in the future we will have to accept a lower standard of living for all."

That's the inevitable outcome. That's why spending cuts are so important.

Ironically, Jim Cramer also believes that if lawmakers would set aside politics and reach an agreement – any agreement –the resulting economic boom would far outweigh the burden of raised taxes or spending cuts.

"We have so many things going for us in this country that the two percent would be able to make major gains in their wealth, again, much more than they would pay, proportionately, in taxes," said Cramer.

"And the middle class would be more upwardly mobile and more able to pay higher tuition for college as well as saving for retirement, the two biggest challenges most people face."

"Their 401ks and IRAs would go up so much that it would make up for the end of the payroll tax break, and for the capital gains and dividend tax increases for what little money they can now save outside those tax favored vehicles."

But lawmakers don't seem to understand – and as a result the negotiations remain at an impasse.

And that doesn't help anybody.


Read More: Cramer: Can't Get Ahead? – Blame Washington!



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