Economy

Everything You Need to Know About the Fiscal Cliff

Just in case you're confused about the details of the impending "fiscal cliff," here are three easy-on-the-eyes explanations/primers on what's at stake and what could happen.

First, Kevin Drum (but you should read the whole thing):

The fiscal-cliff way: On January 1, about $400 billion in tax increases and $200 billion in spending cuts will take effect. That's $600 billion, or 4 percent of GDP, and that would be a huge drag on the economy.

Also, here's The Week magazine with a solid write-up, and Ric Edelman with an even-keeled run down.

Bottom line: if it happens, the economy will suffer -- as will just about everyone.