As of this writing, the Federal Government shutdown is in full swing with apparently no end in sight. Many think the effects of this political maneuvering as a distant issue, mainly impacting government workers in DC and far away places, but the reality is that it’s going to affect all of us, and sooner than you might think.
Hiring? The Republican majority in both houses are citing that undocumented workers might be getting benefits like Medicaid, SNAP, Welfare, etc., and although thoroughly debunked, they keep screaming about this. Ironically, the one sure way of controlling the hiring of undocumented workers is using the E-Verify system, which is now shut down because the DHS (Dept of Homeland Security) has suspended operations since October 1st.
Analyzing Economic Numbers? Due to the shutdown, the Bureau of Labor Statistics (BLS) has suspended all operations, including the release of monthly job numbers, inflation figures and other vital data that businesses and investors use as barometers to assess financial moves and investments. This comes at a critical time, as the economy has been edging towards a recession and notably higher unemployment rates.
Interest Rates? The government shutdown could make the Fed’s decision to raise or lower interest rates more challenging if the data they rely on to make such decisions is compromised or simply skipped. Without reliable data for economic indicators, an error in determining interest rates could make inflation and unemployment worsen because it could be based on assumptions that might or might not be true.
SNAP, Food Stamps, or Nutrition Aid? These will be among the first to feel the pain during this shutdown. The WIC (Women, Infants and Children) program providing supplemental nutrition to families in need will be left high and dry, which is particularly tough as grocery prices are rising at an alarming rate. The SNAP (Supplemental Nutrition Assistance Program), formerly known as Food Stamps, isn’t in as dire of condition at the moment, but they too will run out of funds if the shutdown drags on
Missing Paychecks? It’s not just Washington bureaucrats who might be furloughed without pay, but active-duty military service members might have to figure out how to navigate without a paycheck for an unspecified amount of time. This could cause a huge strain to military families and the communities that depend on their business to stay in business.
Travel plans? Many are concerned about the FAA, air traffic controllers, TSA agents getting funding cut off, and we really have no idea how that might impact flight safety and reliability.
Now what? To say it’s a mess is an understatement. What might amount to political posturing could put a big hurt on so many who depend on the federal government to function smoothly and without disruption. Let’s hope this is resolved quickly. It’s not somebody else’s problem; it’s our problem.
