fiscal cliff

noun

1. a governmental or personal financial crisis that is brought on by economic factors or policies.

   High housing costs have pushed many families over the fiscal cliff.

   Some municipalities are on the edge of a fiscal cliff after years of overspending.

2. (specifically) a financial crisis that threatens to disrupt the economy or personal finances and is brought on by steep governmental spending cuts and tax increases.

   Congressional legislation to avert the fiscal cliff.

fiscal cliff

noun

1. informal,  a situation in which sudden changes in government expenditure and taxation have a profound effect on a country's economy

Word History and Origins

Origin of fiscal cliff¹

First recorded in 1950–55