I recently came across a great article about the first time the US went over a ‘fiscal cliff’, back in 1893. I found it, of all places, in the Chronicle of Higher Education.
It’s a fascinating look at revenues through tariffs, unanticipated consequences, perverting incentives, inducing the overthrow of an island monarchy in favor of annexation by a foreign power, accidentally destabilizing a second island with echoes through to today, and some -very- clever pamphleteering! I wonder if 100 years from now we’l be able to see similar ripples and consequences from this ‘fiscal cliff’.
