While holiday shoppers got the season off to a hot start, a warning Monday from the White House that the approaching Fiscal Cliff could cause Americans to hang onto their money, and concerns over next year's taxes could put a crimp in the rest of the holiday spending season.
"But truthfully it is unlikely that that would start to happen during the holiday season," said St Michael's College Economics Professor Patrick Walsh. "It wouldn't be until January or February where people start looking at their paychecks and start saying, 'oh my gosh I am making less money, I need to cut back.' So I don't think it would have that much impact on the holiday season. It could potentially have a large impact on the overall economy next year."
While he is not a political scientist, Walsh guesses Congress and the President will let the tax cuts expire and spending cuts go into place, but then work out a deal a few days later. "They can swoop in and change some of those taxes, postpone some of those spending cuts because this Congress wants to look like the heroes who saved the situation," he said. "So it maybe politically easier for them to let us go over the cliff and pull us back."
While holiday shopping may continue on its current track this year, next year could be a completely different story, depending on how soon Congress and the President can come up with a budget deal.
Walsh said it is more people's employers and businesses who are focused a lot more on what's going on in Washington, and they may start taking steps to pull back on new hires or production.
Tuesday, December 10 2013 7:45 PM EST2013-12-11 00:45:37 GMT
"Today I am proud to launch Connect Vermont, an initiative to deliver by 2013 my promise of high-speed internet access and cell service to every corner of our state," said Gov. Peter Shumlin, D-Vermont,More >>
In a few weeks, Gov. Peter Shumlin will become the second Vermont governor to fall short on a pledge to bring cellphone and high-speed internet access to every Vermonter that wants it. What's the next step to connect the state? More >>
Tuesday, December 10 2013 8:00 PM EST2013-12-11 01:00:14 GMT
Gov. Peter Shumlin, D-Vermont, has been re-elected as the chairman of the Democratic Governors Association. The DGA held its annual meeting in Washington, D.C., Monday, where the governor was uncontestedMore >>
Vt. Gov. Peter Shumlin has been re-elected as the chairman of the Democratic Governors Association.More >>
Tuesday, December 10 2013 7:48 PM EST2013-12-11 00:48:09 GMT
Vermonters who didn't pay ticket prices of up to $10,000 to hear New Jersey Gov. Chris Christie speak during an upcoming visit likely won't get to hear him via the media.More >>
N.J. Gov. Chris Christie will make a stop in Vermont Wednesday to address nearly 700 Republican Party members. The Essex Jct. event is sold out, but there aren't any media outlets on the guest list. Melissa Howell explains why.More >>
Tuesday, December 10 2013 7:51 PM EST2013-12-11 00:51:05 GMT
When Vermont received an F from the Center For Public Integrity for financial disclosure requirements for state Supreme Court justices, it didn't ruffle too many feathers. "We weren't surprised by theMore >>
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Tuesday, December 10 2013 11:41 AM EST2013-12-10 16:41:55 GMT
St. Albans police are on the hunt for an armed robber who targeted a convenience store. Police say at about 9:45 p.m. Monday, a man entered the South Main Grocery and displayed a weapon. He left the storeMore >>
St. Albans police are on the hunt for an armed robber who targeted a convenience store.More >>
Tuesday, December 10 2013 3:28 PM EST2013-12-10 20:28:00 GMT
Fast food and quick cash? Police say a couple targeted McDonald's in Morrisville Monday night. Investigators say David McNab, 25, and Anna Gilchrist, 23, tried to rob the restaurant at about 9 p.m. TheirMore >>
Police say a man and woman face tried to rob the McDonald's in Morrisville Monday night.More >>