Nov. 21 (Bloomberg) -- In one way, the so-called fiscal
cliff threatening the U.S. economy is less dangerous than widely
supposed. In another, it’s more.
First, as many have said, the cliff is really a slope. At
year’s end, the tax cuts passed in 2001 and 2003 automatically
expire, and a deliberately brainless process of sequestration
starts to cut public spending. But the full fiscal effects of
both events don’t arrive all at once. The changes would have to
be sustained -- or be expected to be sustained -- to drive the
economy into a recession.