Economy

Everything You Need to Know About the Fiscal Cliff

Written by Bob Cesca

Just in case you're confused about the details of the impending "fiscal cliff," here are three easy-on-the-eyes explanations/primers on what's at stake and what could happen.

First, Kevin Drum (but you should read the whole thing):

The fiscal-cliff way: On January 1, about $400 billion in tax increases and $200 billion in spending cuts will take effect. That's $600 billion, or 4 percent of GDP, and that would be a huge drag on the economy.

Also, here's The Week magazine with a solid write-up, and Ric Edelman with an even-keeled run down.

Bottom line: if it happens, the economy will suffer -- as will just about everyone.