Dear readers: read this before panicking. — J.W.
While Congress and the media obsess over the “fiscal cliff,” there is a growing dissent amongst some politicians and economists as to how the issue is being labeled. More appropriate terms, critics of the “fiscal cliff” argue, may include: “fiscal slope,” “gradual fiscal slope,” “fiscal curve,” “taxmageddon,” and “austerity crisis.” These alternatives attempt to reflect the idea that the fiscal cliff, a series of mandatory budget cuts and tax hikes that kick-in at the end of the year, is not quite the doomsday that falling off a cliff implies.
As Ed Ardeni, president and chief investment strategist for institutional investor advisory Yardeni Research, put it:
“We’re not going to fall off the edge of the earth at the beginning of next year. When you fall off a cliff you die. So it’s a bit of an exaggeration to say that’s what we’re facing here.”
Similarly, Sen. Bernie Sanders (I-Vt.), noted that even if the deadline is missed by a month…
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