Fiscal cliff

This thing called “Fiscal Cliff” bothers a lot of people nowadays, so I figured it would be a good topic to start from. As many times before, a perfectly useful term is used to describe something completely different to divert attention from something really important.

Someone asked me to explain what is this thing all about, and I did, in technical details, to the extent of my understanding. Not convinced, a person asked me “so what is so ‘cliffy’ about it?”.

Really – what is? After all, those automatic tax hikes and spending cuts are planned events, agreed upon some time ago by the same Congress people, as part of the same types of deals as the one they are trying to cook now. We are told that without agreement we will all fall off the fiscal cliff, but how exactly?

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