On Bauer Business Focus — A conversation on the nation’s economic outlook with Andrew Schneider, business reporter for KUHF 88.7 FM.
With the results of Tuesday’s election giving incumbent President Barack Obama a second term, economists are now looking at the financial future of the country and how to avoid the so-called “fiscal cliff,” the term used to describe the situation the U.S. government faces at the end of the year, when the terms of the Budget Control Act of 2011 go into effect.
Steven Craig, an economics professor at the University of Houston, spoke to KUHF business reporter Andrew Schneider for this week’s Bauer Business Focus to discuss the challenges he sees.
“All the tax increases we’re going to do are unpopular because they are paying for stuff we’ve already consumed rather than what we’re going to consume in the future,” Craig said. “It’s not like we’re going to increase taxes for a new government activity, we have to increase taxes for what we’ve done the past ten years.”
As the nation faces a long road ahead for recovery, the city of Houston also has issues to address, according to Craig.
“We have a high debt load here in Houston. The city of Houston has a unique problem of pensions for their worker,s and this is a situation, like the federal government is talking about, that you have to tax now for what was done in the past.”
Click here to hear the full interview.