Why US fiscal cliff may be a gentle hill

Why US fiscal cliff may be a gentle hill

These are awkward days for deficit hawks who believe the US economy can return to health only if the nation puts its fiscal house in order, writes Robert Reich. They are about to get their wish. At the beginning of next year, the federal budget deficit is scheduled to shrink with a loud thud. Unless Congress does something to avert it, more than $600bn in tax increases and spending cuts will automatically come into effect. That is equivalent to about 5 per cent of the entire US economy, more than projected growth in gross domestic product next year. http://link.ft.com/r/A1TNOO/NJQYL2/C5MKOT/JE0X4K/RPU1VI/GX/h?a1=2012&a2=10&a3=12