January 5, 2013 5:00 PM

Bruce Glensky | Fiscal cliff resolution shifts burden of discipline to creditors

The fiscal cliff was created by Congress to force decision-making. The process of sequestration; across the board spending reductions on defense and discretionary spending, and the expiration of the Bush and Obama tax-cuts would force the “grand bargain” that would yield a ratio of spending cuts to tax increases of 4 to 1. The grand bargain would sustain short-term economic growth while putting the budget deficit on a long-term path toward balance. This vision fell apart on New Year’s Day.

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