Hoosiers will feel impact if country goes over fiscal cliff
BSU expert: Unemployment could rise, stocks tumble
Last Updated: 349 days ago
INDIANAPOLIS - Time is running out as the so-called fiscal cliff approaches and President Obama is pushing senate leaders to reach a compromise.
President Obama met with congressional leaders in a last-minute effort to reach a deal Friday.
“I believe such a proposal could pass both houses with bipartisan majorities as long as those leaders allow it to actually come to a vote. If members of House and Senate want to vote no, they can. But we should let everybody vote. That’s the way this is supposed to work,” Obama said.
Ball State University economist Mike Hicks explained how the crisis could affect a typical working Hoosier.
“If you’re making $40,000 a year, this is almost a $2,000 tax increase on your household,” Hicks said.
Although most American households could see a significant tax increase, one local teacher supported taking the fall now if it meant helping the national debt in the future.
“I’m kind of doomed, and my kids are kind of doomed in the long run if we don’t solve something soon. We’re in big trouble,” said the teacher.
If a compromise is not reached, Hoosiers will feel the impact nationally and locally.
“If it does happen, I think we’ll be in recession in 90 to 120 days,” Hicks said. “I see the unemployment rate rising, I see the stock market taking a continued whack.”
If the Senate reaches an agreement, the House could vote on a compromise as early as Jan. 2, the day before the new Congress takes office.
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