How to End the Great Fiscal Wars
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Nov. 21 (Bloomberg) -- In one way, the so-called fiscalcliff threatening the U.S. economy is less dangerous than widelysupposed. In another, it’s more.
First, as many have said, the cliff is really a slope. Atyear’s end, the tax cuts passed in 2001 and 2003 automaticallyexpire, and a deliberately brainless process of sequestrationstarts to cut public spending. But the full fiscal effects ofboth events don’t arrive all at once. The changes would have tobe sustained -- or be expected to be sustained -- to drive theeconomy into a recession.