How the fiscal cliff could affect the Rockford area - WREX.com – Rockford’s News Leader

How the fiscal cliff could affect the Rockford area

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ROCKFORD (WREX) -

Just four days out from the fiscal cliff deadline, Democrats and Republicans are still at odds over what is best for our country's economy.

If no deal is reached by the end of the year, the vast majority of Americans will see their income taxes go up, and over two million people will lose their jobless benefits.

In the Rockford area, the fiscal cliff will affect people in even more ways.

Bob Evans, political science professor at Rockford College, says that without a deal, consumers and businesses across the country will greatly reduce their spending.

Confidence in the economy plays an important role when people decide to make large purchases. When people are uncertain about the future of the economy, they may wait for more prosperous times to buy a car or home.

This could mean disaster for the numerous factories in our area.

"The parts of the Midwest that do manufacturing work are likely to be hurt if we go over this fiscal cliff because that means that orders won't be placed for machines and parts and tools," Evans says.

If a deal is not reached before the end of 2012, the worst consequences of going over the fiscal cliff may be avoided, as long as Congress makes a decision within the next few weeks. However, people could still begin feeling the negative effects as soon as January 1.

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