LIVE VIDEO: 10 News at Noon    Watch
 

East TN small businesses prepare for fiscal cliff

1:47 AM, Dec 31, 2012   |    comments
  • Share
  • Print
  • - A A A +

Many East Tennessee small businesses are getting ready for the fiscal cliff as some customers prepare to spend their money with more caution.

According to the Council for Economic Advisers, a three-man council that advises President Barack Obama on national economy policy, Tennesseans could end up spending nearly $4 billion less as consumers in 2013 if taxes go up.

Laura Spaller owns the Four Seasons Vintage in Bearden. She said her business is still getting over the effects of the recession.

"I still think people are watching their money," Spaller said.

She fears if America goes over the cliff, she could even lose business.

More Information: Congressional Budget Office Report 

"If it comes between shopping and putting food on the table, I think they're [customers] are going to put food on the table," she said.

Dale Bell, owner of Bell Digital Media, said he expects many local businesses to feel the same pressures.

"It's going to be very bad for people," he said. "They're not going to have the disposable income that they used to have."

According to the Congressional Budget Office, America's economy would contract, and the unemployment rate would rise to 9.1 percent in the fourth quarter of 2013, if no deal is reached. The CBO said it would expect the economy to steadily decline all the way until the summer.

Most Watched Videos