WordMean Explains: What Is a Fiscal Cliff?
If you’ve been paying attention to the headlines over the last 12 months (particularly the last few weeks) then you’ve most likely seen the panic that America is facing with its agreements, deals, meetings and avoid-at-all-cost mannerisms concerning a so-called “FISCAL CLIFF”
So what in the hell is it?
The "fiscal cliff" is the term used for detrimental and gradual economic effects that will result from things like tax increases, spending cuts, and a corresponding reduction in the US budget insufficiency.
The deficit (which more or less describes how much the government spends and what it takes) is planned to be reduced by about 43% in 2013. The Congressional Budget Office (CBO) guesstimates that this sudden decrease in the arrears – the fiscal cliff – will lead to a mini-recession in 2013 with the subsequent increase in unemployment.
Whilst most avenues are excluded from funding cuts (such as Veteran Pensions) – Spending for defence amongst other interests will be slightly trimmed in various ways to avoid any further extremes.
As of writing (January 1, 2012) – The fiscal cliff has not actually officially occurred but should it do so within the month then America’s overall debt will increase.
According to the U.S. National Debt Clock the current American debt is $16422892300000. In plainer terms that is a total amount of 16 trillion, 422 billion, 892 million, 300 thousand dollars.