Economists warn the fiscal cliff will touch almost everyone
POSTED: Wednesday, December 5, 2012 - 7:30pm
UPDATED: Wednesday, December 5, 2012 - 7:34pm
BATON ROUGE, LA (NBC33) — While politicians in Washington have yet to reach a solution on the fiscal cliff local economist Loren Scott says if they can't come to a deal, it's you that will suffer.
"If we go off it, it absolutely will affect everybody. There’s nobody out there that will be able to escape its impacts I would not think," Scott explained.
Aptly referred to as a cliff because it signifies an increase in tax rates and a decrease in federal funding Scott said some places in the state of Louisiana would be fall off that cliff farther than others. Areas with greater defense industries like Shreveport would suffer more if federal funds to the defense budget were cut. On the converse, the Greater Baton Rouge area could fare better than the national average.
"Baton Rouge is actually doing alright because of low natural gas prices which are helping our chemical industry out. But the problem is, even our community can not escape the impact of a national recession.
Regardless of where you live in the state though, Scott says if the two sides can't agree soon another recession is on the horizon.
"Everybody should be unhappy about it because number one you go in to a recession that means jobs are going to disappear at the very time we need jobs appearing. And number two at the same time that happens your tax rates go up," Scott explained.
Republicans and Democrats have until the end of the year to reach some sort of agreement before they reach the fiscal cliff.