Sixty-four percent of respondents to a P&I Online survey last week believe Congress will not resolve the “fiscal cliff” during the remainder of its lame-duck session.
The question was asked the first full week after the Nov. 6 election in which President Barack Obama was re-elected while the House of Representatives remained in Republican control and the Senate in Democratic control.
The fiscal cliff is a reference to the automatic spending cuts and tax hikes that would go into effect should a deal on the budget and debt ceiling not pan out by the end of the year.
If the fiscal cliff were to come to pass, the impact could cripple the U.S. economy. A BlackRock research note published in October suggests that under the worst-case scenario where nothing is done and the combination of tax hikes and spending cuts kick in on the first day of 2013, U.S. gross domestic product could decline by 5.1% in 2013.