Fiscal Cliff

A “fiscal cliff” is a point where a government can’t pay its bills. The term “fiscal cliff” was used in 1975 to describe New York City’s financial crisis. “The Fiscal Cliff-hanger” was a newspaper headline in 1967.
 
The “fiscal cliff” of the United States federal government was described in February 2012 by Federal Reserve Chairman Ben Bernanke, who testified at a House Financial Services Committee hearing:
   
Under current law, on January 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases. I hope that Congress will look at that and figure out ways to achieve the same long-run fiscal improvement without having it all happen at one date.”
 
“Fiscal cliff” was frequently mentioned in 2012 as legislators warned about budget cuts combined with tax increases, all scheduled to take effect in January 2013.
 
 
Wikipedia: United States fiscal cliff
The United States fiscal cliff refers to a large predicted reduction in the budget deficit and a corresponding projected slowdown of the economy if specific laws are allowed to automatically expire or go into effect at the beginning of 2013. These laws include tax increases due to the expiration of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 and the spending reductions (“sequestrations”) under the Budget Control Act of 2011.
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Etymology
In late February 2012, Ben Bernanke, chairman of the U.S. Federal Reserve, was the first person to use the term “fiscal cliff” for this crisis. Before the House Financial Services Committee he described “a massive fiscal cliff of large spending cuts and tax increases” on January 1, 2013.
 
Google News Archive
2 June 1967, Youngstown (OH) Vindicator, pg. 10, col. 2:
The Fiscal Cliff-Hanger
By RICHARD SPONG
(Editorial Research Reports)
 
Google News Archive
13 May 1975, Milwaukee (WI) Sentinel, pt. 1, pg. 3, col. 2:
New York City Teeters
On Edge of Fiscal Cliff
Washington Post Special
     
16 June 1975, Dallas (TX) Morning News, “Myths About New York City” by Mike Kingston, pg. D2, col. 6:
WHO HASN’T looked with horror at New York City’s financial plight?
 
The nation’s biggest, richest city is about to go over the fiscal cliff if the state and local government don’t lend a helping hand.
 
New York (NY) Times
With Tightened Belt, New York Pulls Back From Fiscal Brink
By ERIC LIPTON
Published: July 30, 2003
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In other words, the city—which is budgeted to have its smallest full-time city-financed work force since 1986—is no longer standing at the edge of a fiscal cliff, city fiscal monitors and commentators from bond rating agencies and budget watchdog groups agree.
 
New York (NY) Times
OP-ED COLUMNIST
The Hard Part
By ROSS DOUTHAT
Published: June 21, 2009
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These are scary numbers, for a country headed for a fiscal cliff — scary enough to send the Finance Committee scrambling to craft a cheaper version of its bill, and scary enough to give liberals flashbacks to the collapse of Clintoncare.
     
Forbes.com
Stop Earmarks Now
Jim DeMint, 02.04.10, 02:30 PM EST
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To stop our nation from driving off a fiscal cliff, we must force lawmakers to give up their pet projects and focus on reigning in reckless spending.
 
New York (NY) Times
OP-ED COLUMNIST
Waiting for a Landslide
By ROSS DOUTHAT
Published: August 7, 2011
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But there’s no guarantee that such a majority will be established in time to walk the country backward from the fiscal cliff.
 
OCLC WorldCat record
We Were Headed Towards This Fiscal Cliff Long Before Barack Obama Took the Wheel
Author: T Cavanaugh
Publisher: [Escondido, CA, etc., Reason Foundation, etc.]
Edition/Format:  Article : English
Publication: Reason. 43, no. 5, (2011): 42-51
Database: ArticleFirst
 
Reuters
Highlights: Bernanke’s Q&A testimony to House panel
WASHINGTON | Wed Feb 29, 2012 4:46pm EST
(Reuters) - Below are highlights from the question and answer session of a House Financial Services Committee hearing with Federal Reserve Chairman Ben Bernanke testifying on monetary policy and the U.S. economy.
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BERNANKE ON THE FISCAL CLIFF AHEAD:
“Achieving long-run sustainability and providing comfort to the public and the markets that deficits will come under control over a period of time—that’s very important for confidence and for creating more support for the recovery. But at the same time, I think you also have to protect the recovery in the near term. Under current law, on January 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases. I hope that Congress will look at that and figure out ways to achieve the same long-run fiscal improvement without having it all happen at one date.”
 
OCLC WorldCat record
Fiscal Cliff With $500 billion in tax hikes and $100 billion in spending cuts waiting in the post-election wings, Americans are in for an encore they never requested
Author: J J Schatz
Edition/Format:  Article : English
Publication: CONGRESSIONAL QUARTERLY WEEKLY, 70, no. 16, (April 23, 2012): 800-804
Database: British Library Serials
 
OCLC WorldCat record
As U.S. nears a “fiscal cliff,“concerns rise for future R&D
Author: Lane E.; Roehr B.; Lempinen E.W.
Edition/Format:  Article : English
Publication: Science, v336 n6084 (2012 05 25):
 
OCLC WorldCat record
IMF Encourages U.S. to Address `Fiscal Cliff’
Edition/Format:  Article : English
Publication: TAX NOTES INTERNATIONAL, 67, no. 2, (July 9, 2012): 139
Database: British Library Serials
 
Council on Foreign Relations
What Is the Fiscal Cliff?
Author: Jonathan Masters, Online Editor/Writer
Updated: August 1, 2012
The “fiscal cliff” is a term used in discussions of the U.S. fiscal situation to describe a bundle of momentous tax increases and spending cuts that are due to take effect at the end of 2012 and early 2013. In total, the measures are set to automatically slash the federal budget deficit by $607 billion or approximately 4 percent of GDP between FY 2012 and FY 2013, according to the Congressional Budget Office (CBO). The abrupt onset of such significant budget austerity in the midst of a still fragile economic recovery has led most economists to warn of a double-dip recession in 2013 if Washington fails to intervene in a timely fashion.
     
OCLC WorldCat record
Whoever wins, loses Even if the ``fiscal cliff’’ is avoided, 2013 is shaping up as a tepid-growth year neither candidate can fix
Edition/Format:  Article : English
Publication: BUSINESS WEEK -NEW YORK- no. 4298, (September 17, 2012): 13
Database: British Library Serials
 
OCLC WorldCat record
America’s fiscal cliff: Give us a brake
Edition/Format:  Article : English
Publication: ECONOMIST -LONDON- ECONOMIST NEWSPAPER LIMITED- no. 8805, (October 6, 2012): 69
Database: British Library Serials