Over the cliff?
Barack Obama must do more than avoid an economic abyss. He has a chance to fix America’s finances
BEN BERNANKE, the chairman of the Federal Reserve, is not known for his turns of phrase. But “fiscal cliff”—the term he coined to describe the tax increases and spending cuts that will hit America’s economy at the start of 2013 unless politicians agree to avert them—has inspired songs (“The fiscal cliff is a danger zone/It’s where grown men go when budgets are blown,” croons Merle Hazard, a satirical singer) and television comedy (Jon Stewart’s “The Daily Show” calls it “Cliffpocalypsemageddonacaust”).
There have also been more serious consequences. The shadow of the fiscal cliff has depressed corporate investment. American consumer confidence has started to wobble. Growth is slowing, perhaps to as little as 1% in the fourth quarter. Policymakers around the world are fretting: Australia’s central bank has just cut rates, citing the cliff as a worry.
This article appeared in the Leaders section of the print edition under the headline "Over the cliff?"
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