As news of the fiscal cliff looms closer to the new year, one report indicates Arizona could potentially lose 50,000 jobs. It’s a damning figure that could result in placing Arizona employment in similar conditions as to when the recession first started. Inability to find resolution to the fiscal cliff threatens to cost the state billions of dollars long term. Insiders are warning that automatic spending cuts and increased tax rates could rattle Arizona residents, having dire consequences to an already rebounding job market.
To avoid economic disaster, Arizona will have to undergo a variety of spending cuts in the next few months. Groups such as Fix the Debt are calling for politicians to work out an effective compromise before the inevitable. Figures indicate that countries such as China, Japan and Brazil hold massive amounts of US debt holdings, urging changes to US tax codes and legislation to avoid adding to an already staggering total.
Although Arizona will not be the only state dramatically effected by a lack of fiscal cliff compromise, the job market in the state will regress back to bleak conditions. Although multiple offers have been proposed, no deal has been embraced universally by republicans and democrats. Despite this, political leaders are indicating a deal is close.