What is The Fiscal Cliff?

The Fiscal Cliff is not really a cliff at all.
It's more like a giant game of chicken between Republicans and Democrats.

Republicans have their foot on the gas of a Red Pickup leaning out the window and shouting, "Keep all of W's Tax Cuts! And cut some entitlements!" Democrats have set their Prius to cruise and are poking out the sun roof to say, "Keep tax cuts only for the middle class, don't cut Medicare!"

If neither side turns the wheel by Jan 1, 2013, we lose it all:
All the Bush Tax Cuts, and then some.
Medicare Pay rates for doctors will be slashed.
All Puppies received for Christmas will be returned.
Happy New Years Everybody!

How did this happen?
We had the same exact argument 2 years ago. In response we made a temporary fix and set up this booby trap for ourselves to motivate us to fix the situation. Guess what? We didn't! We're like a fat guy who put all the cookies into mousetraps hoping that would deter us from snacking. But all we've got are blistered fingers covered in cookie crumbs.

How does this End?
1. Both sides can move a little to allow room for a compromise.
2. We can crash into each other, slow the economy and send everyone a New Years present of higher taxes.
Sounds bad I know, but if #2 happens Legislators could always propose new bills restoring their favorite parts of what we lost. If Democrats proposed lowering taxes for the Middle Class and protecting medicare I'm not sure the Republicans could vote against it.

Let the Game of Chicken Continue!