But analysts say Houston may not feel effects for a while
We are a week away from the much talked about sequester unless a deal gets done in Washington. We have heard the word ‘sequesters a lot, but Patrick Jankowski of the Greater Houston partnership says most people don't know exactly what it means.
“It’s automatic cuts that are going to take place because Congress has not been able to reach an agreement about how to reduce the deficit,” Jankowski said.
And what will it do when it happens?
“This device is a doomsday device that Congress has put in place to try and reduce the deficit,” Jankowski explained.
We have heard predictions of economic doom if it happens, but KTRH's Pat Shinn says you shouldn’t worry.
“In no way do I expect this to throw us into a recession,” Shinn explained.
Some think the country will lose millions of jobs because of these cuts. Shinn doesn’t see it that way.
“There would be some cuts. There would be some initial impact,” Shinn stated.
However, Jankowski doesn't most Houstonians will be affected right away.
“The impact in Houston is not certain yet. The biggest amount of cuts will occur in Department of Defense. Since the Department of Defense doesn’t have a large presence in Houston that part of the sequester will not impact Houston,” Jankowski explained.
Jankowski also says predictions of millions of job losses are 'scare tactics.’ And he thinks all of those predictions of doom and gloom should be taken with a grain of salt.
If anyone tells you that they know what’s going to happen then they have a crystal ball because no one knows for sure what’s going to happen.
He also says the Houston economy is strong enough that many of us won't feel the sequester's effects.