Total budget deficit reduction caused by the fiscal cliff (i.e. tax changes and automatic spending cuts is estimated at $607 billion). However, the cuts will come at a significant cost in economic growth and jobs and will likely cause a new recession.
If $641 billion is extracted from the economy, it would lead to a contraction in income and jobs by an amount that is much greater than the original spending cuts. That is, the multiplier will work in reverse.
