Falling off 'fiscal cliff' could cost MO 51,000 jobs

In less than a week America could tumble over the "fiscal cliff" – a combination of $600 billion in spending cuts and tax increases – if Congress fails to reach an agreement, a move the Congressional Budget Office says could contract the economy 3.9 percent in the first quarter and send the country into another recession. In Missouri, that could mean the loss of about 51,000 jobs, according to an analysis by George Mason University.

“Missourians have already faced a long road to economic recovery following the last recession,” said Dan Mehan, President and CEO of the Missouri Chamber of Commerce, in a news release. “We can’t afford to gamble with pushing the economy backwards because lawmakers can’t agree on a deal to avert the fiscal cliff and address the national debt. It’s this kind of politicking in Washington that leaves lawmakers with a poor reputation. I urge members of Congress to work together to reach an agreement.”

According to a release from the 17-state nonpartisan coalition Campaign to Fix the Debt, if lawmakers fail to avert the fiscal cliff, 18 percent of federal money sent to states would be eliminated, reducing funding for programs such as education, housing and low-income initiatives. In addition, curtailments of federal grants would cut out 7.2 percent of all revenue Missouri receives on an annual basis, according to the Pew Center on the States, much of which already has been allocated into the state’s spending plans.

Already, uncertainty around the fiscal cliff is affecting financial markets. A national survey by the National Association for Business Economists found 87 percent of respondents believe economic uncertainty is holding back the economy and 62 percent of Americans in a Gallup poll want government leaders to work on bipartisan solutions.

According to the Associated Press, President Barack Obama has cut his Christmas vacation in Hawaii short, arriving back in Washington, D.C. Thursday to resume negotiations with members of Congress, also returning from a holiday break. So far, the president and congressional Republicans have been unable to reach an agreement on any fiscal cliff alternatives.