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How Fiscal Cliff Shapes Up After Election

The fiscal cliff is a reality that will take on different shapes with the outcome of the U.S. election.

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The fiscal cliff looms large. It should. Unless Washington does something, 2013 will face a sudden and automatic fiscal restraint. The shock would almost certainly drive this economy’s already enfeebled recovery into recession. It is a frightening prospect, to be sure, but, still, likelihoods suggest that even this Congress will steer clear such a cliff.

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However, the federal budget deficit is expected to top $1 trillion for the first time since 2012, and to reach 5.4% of GDP.

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