Fiscal cliff would put state in recession - WLOX.com - The News for South Mississippi

Fiscal cliff would put state in recession

JACKSON, MS (Mississippi News Now) -

It's called the fiscal cliff and if the country falls off of it, state economist Darrin Webb says that fall would be right into a recession.

"Certainly Mississippi would be in recession and we'd see dramatic impacts from that," said Webb.

To battle the deficit the cliff, at the beginning of the year, would automatically increase taxes and cut federal spending by about $607 billion. Webb says with Mississippi depending heavily on federal money, that type of measure would more than cripple the state. In 2010, about a third of the state's gross domestic product was represented by spending from the federal level. Even though the scenario sounds disastrous, Webb doesn't foresee any of it happening.

"I don't think anybody really expects us to go off the cliff," said Webb. "It was designed to be so horrendous that we would not go off the cliff so presumably cooler heads will prevail, some compromise will be made. We don't know what that looks like at this point."

Neither do congressional lawmakers. Although not speaking directly about the fiscal cliff, U.S. Senator Roger Wicker told supporters in his re-election speech about the challenges he sees with bringing down the national debt.

"When we talk about solving problems in this day and age, we talk about making tough decisions because we have a $16 trillion debt," said Wicker.

While Webb believes lawmakers will come up with something, it most likely won't be an overall solution that fixes all the concerns.

"My guess is we could see taxes increase and the expenditures, the spending, postponed," said Webb.

Webb says a study is in the works to fully examine what's at stake and what would happen if for some reason the fiscal cliff is hit.

Copyright 2012 WLBT. All rights reserved.

 

  • NEWSMore>>

  • Gulfport's Matt Luke fulfills a dream to become Ole Miss Head Football Coach

    Gulfport's Matt Luke fulfills a dream to become Ole Miss Head Football Coach

    Tuesday, July 25 2017 12:10 AM EDT2017-07-25 04:10:04 GMT

    The Luke family has been committed to Ole Miss for years.  On Monday Matt Luke met the media in Oxford four days after taking over the head coaching reins from Hugh Freeze.

    More >>

    The Luke family has been committed to Ole Miss for years.  On Monday Matt Luke met the media in Oxford four days after taking over the head coaching reins from Hugh Freeze.

    More >>
  • Matt Luke introduced as Ole Miss interim head coach

    Matt Luke introduced as Ole Miss interim head coach

    Monday, July 24 2017 11:58 PM EDT2017-07-25 03:58:50 GMT
    WLBTWLBT

    14 years as part of the Ole Miss football program as a coach or player has prepared Matt Luke for this opportunity. Admittedly it doesn't come under the circumstances he might've envisioned. But with a Rebel bloodline that runs 3 generations deep, the position fulfills a lifelong dream. "I can truly tell y'all today that this is my dream job," Luke said Monday at his first press conference as Ole Miss interim head coach. "It's a job that I've been preparing my whole li...

    More >>

    14 years as part of the Ole Miss football program as a coach or player has prepared Matt Luke for this opportunity. Admittedly it doesn't come under the circumstances he might've envisioned. But with a Rebel bloodline that runs 3 generations deep, the position fulfills a lifelong dream. "I can truly tell y'all today that this is my dream job," Luke said Monday at his first press conference as Ole Miss interim head coach. "It's a job that I've been preparing my whole li...

    More >>
  • Rain puts Pascagoula's new football turf on the clock

    Rain puts Pascagoula's new football turf on the clock

    Monday, July 24 2017 11:09 PM EDT2017-07-25 03:09:56 GMT
    Rain has slowed down construction crews as they attempt to put a new field turf at War Memorial Stadium (Photo Source: WLOX News Now)Rain has slowed down construction crews as they attempt to put a new field turf at War Memorial Stadium (Photo Source: WLOX News Now)

    The Pascagoula Panthers open the 2017 football season on the road. In fact, their first three games are road contests. That scheduling quirk may give field turf crews just enough time to get War Memorial Stadium ready for the September 8 home opener. The wet weather in South Mississippi is placing quite the burden on construction workers as they attempt to complete stadium renovations. The project was suppose to be finished before the beginning of Pascagoula's football season.

    More >>

    The Pascagoula Panthers open the 2017 football season on the road. In fact, their first three games are road contests. That scheduling quirk may give field turf crews just enough time to get War Memorial Stadium ready for the September 8 home opener. The wet weather in South Mississippi is placing quite the burden on construction workers as they attempt to complete stadium renovations. The project was suppose to be finished before the beginning of Pascagoula's football season.

    More >>
Powered by Frankly