Fiscal Cliff Casts Shadow Over San Diego Economy
Monday, December 10, 2012
Aired 12/10/12 on KPBS Midday Edition.
Susan Davis, Congresswoman CA-53rd (D)
Erik Bruvold, President, National University System Institute for Policy Research
Aired 12/10/12 on KPBS News.
San Diego's economy could be in for a rough ride if the federal government can't avoid the fiscal cliff.
SAN DIEGO San Diego could end up with wide reaching impacts if federal lawmakers can't find a compromise solution to avoid the fast approaching fiscal cliff. Federal lawmakers are working to avoided automatic spending cuts and tax hikes that take effect in the new year, but there is no deal in sight.
San Diego residents probably won't notice much change right away if there's no deal January 1st, but the region could see huge impacts by spring, according to Tony Cherin, a professor emeritus at San Diego State University
The tax hikes would be most noticeable if people have investment income. He said spending cuts will carve into the region's defense industry and probably hurt tourism.
"If there's an impact on let's say some of the entitlement programs, you might see impacts on biotech, things like that. But I would look first for the impact on the military," said Cherin.
Cherin stands with some economists who argue that that keeping spending flowing is more important that trimming deficits right now, because interrupting the economic recovery could do more harm than good for the nation's finances.
KPBS asked all three Republican congressmen from San Diego to appear on today's shows, but they were not available. Maureen Cavanaugh, Patty Lane and Peggy Pico contributed to this segment.