“If the policies it involves go forward — with massive cuts in defense spending and a massive tax increase on everyone who pays taxes — it will cause a dramatic slowdown in the economy.
It will probably put the nation into recession.
Just the anticipation of it seems to have significantly slowed economic activity — investment, in particular — as we head into the second half of this year. Of course, Congress talks about it. But it cannot act, or will not act, until December.
President Obama has simply abdicated his role as the nation’s leader and moved on to something he can actually do, which is campaign.
But while the fiscal cliff is a critical issue, it may not be the next major threat to our prosperity.
September is a month where unusual and often extremely damaging things seem to happen.”