Patterson’s Collision Center – Banner
CLWA – Less Lawn – Banner
Facey – Banner
Bob’s Country Meats – Banner
Gerard Cosmetics – Banner
Olive Terrace Bar and Grill – Banner
Koalafornia – Banner
Nothing Bundt Cakes – Banner
Galpin Motors – Banner
Providence Medical Center – Banner
Carousel Ranch – Heart Of The West – Banner
Museum of the Bible – Passages – Banner
Green Convergence – Sun Power – Banner
Adage IT – Banner
Outlets at Tejon – Back to School – Banner
Keyboard Galleria – Banner
Valencia United Methodist Church – BBQ – Banner
Academy Swim Club – Banner
College Of The Canyons – Banner
Concerts in the Park – 2015 – Banner
Knott’s Berry Farm – 2015 – Giveaway – Banner
Disneyland – Diamond Celebration – Banner
Oakmont of Santa Clarita – Banner
Beach Bus – 2015 – Santa Clarita Transit – Banner
Action Family Counseling – Banner
IHOP – Banner
All Americans Bail Bonds – Banner
Union Bank – Banner
Small Dog Creative – Banner
Newhall Land – Summer – 2015 – Banner
YMCA – July – Banner
Brent’s Carpet One – Banner
Samuel Dixon – Rubber Ducky – 2015 – Banner
Simply Taylored – Banner
Beyond Harmony – Banner
AV Party Rental – Banner
The Gentle Barn – Banner
It is forecast to be Clear at 7:00 PM PDT on July 28, 2015
Home » Santa Clarita News » County Economist Discusses Potential Impact Of ‘Fiscal Cliff’

County Economist Discusses Potential Impact Of ‘Fiscal Cliff’

Los Angeles County’s chief economist talked Friday about the potential impact of the fiscal cliff if the United States were to take the plunge, while discussing the state of Los Angeles County’s economy.

The overall economic outlook is a positive one, said Robert Kleinhenz of the Kyser Center for Economic Research, especially compared to where the economy was situated three years ago.

While year over year gains are positive, the economy is certainly not out of the woods, yet, or exactly at a point where economists are comfortable touting growth, he said.  

“Jobs have been added at a slightly higher rate than the rest of the nation, but the county is slightly behind the state,” Kleinhenz said. “Yes, we’re making progress, but we’re still at a rate that’s too close for comfort.”

Ultimately, the very nature of a trip off the “fiscal cliff” — a term coined by economists to describe lawmakers’ end-of-the-year conundrum involving the expiration of Bush-era tax cuts that are expected to be compounded by tax increases associated with the Affordable Health Care Act and the implementation of sweeping spending cuts — will unavoidably impact consumer spending, Kleinhenz explained.

“If we go over the cliff and we see those cuts, you’re going to see a pullback effect that’s going to affect a lot of residents,” he said.

“We should be prepared for a pullback in government spending, and whether or not (drastic cuts) come to pass depends on what Congress does over the next few weeks,” Kleinhenz said.

He added that some of the damage has already been done as he’s been hearing — anecdotally, from leaders in private industries in sectors heavily affected by government spending, such as the military — that the uncertainty has prompted them to make cuts and hold off on growth.  

The construction sector has seen some gains, but it’s also an industry that could have a bit of a slog into 2013, Kleinhenz said.

“In terms of housing, and in terms of construction we’ve seen stronger activitiy on the non-residential side,” he said. “Looking at this report, we’re down marginally on a month-over-month and year-over-year basis. That section continues to be weak and has a long way to go.”

However, there are several positive signs, Kleinhenz noted.

The durable and nondurable goods manufacturing  has increased in the United States, reversing a trend that has seen thousands of jobs head overseas. Among the more prominent gains, Apple announced it would be bringing more jobs to a new facility in California at a location yet to be announced.

Kleinhenz attributed these figures to several factors that favor American job growth.

“Changes in the exchange rate, and the fact that the cost of labor is rising in so many places, Asia and China, specifically, meaning the cost of producing in those countries has gone up as the cost of living and wages there have improved in those areas,” Kleinhenz said.

The auto industry, which has a big impact locally, has also seen some positive signs, he said.

“It’s noteworthy that we’ve seen some gains with auto dealers,” he said. “It’s one of the areas we expect to see very big gains by the end of 2012, probably beating the expectation for most auto analysts.”

County Economist Discusses Potential Impact Of ‘Fiscal Cliff’

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

About Perry Smith

Perry Smith is a print and broadcast journalist who has won several awards for his focused, hyperlocal community coverage in several different regions of the country. In addition to five years of experience covering the Santa Clarita Valley, Smith, a San Fernando Valley native, has worked in newspapers and news websites in Los Angeles, the Northwest, the Central Valley and the South, before coming to KHTS in 2012. To contact Smith, email him at
College Of The Canyons – News Banner
Beyond Harmony – News Banner
Academy Swim Club – News Banner
Action Family Counseling – News Banner
AV Party Rental – News Banner
All American Bail Bonds – News Banner
Green Convergence – Tile
The Gentle Barn – Tile
Concerts on the Park – 2015 – Tile
Olive Terrace Bar and Grill – Tile
Small Dog Creative – Generic – Tile
CLWA – Less Lawn – Tile