As house republicans struggle to reach an agreement over budgets, the government faces a shutdown and workers face no pay. Experts said this could further weigh down an already struggling economy.
Congress looks to face shutdown after House Republicans were unable to reach a compromise over a budget, potentially leaving millions without pay.
Without action from Congress, 4 million employees will be left unpaid after September, 30. One police officer from Kansas does not have room for a missing paycheck in his budget. This news comes after many households began to struggle with persistent inflation and the end of Covid-era benefits such as the child tax credit, rental assistance, and the pause on student loan payments, which are now set to resume in October.
If the potential shutdown lasted until December, it could tip the US into a recession, said Mark Zandi, chief economist at Moody’s Analytics. He added: “A couple weeks, no big deal. A month, then it starts showing up with the economic data. Longer than that, it becomes a real problem and if it’s for the entire quarter, buckle in, it probably means a recession.”
Stephen Booth, a police officer with six kids under the age of 15 to support, is a veteran with almost two decades of experience. Now he has to start to think of ways to get by without pay, like feeding his family with the meat he can get from hunting, eggs from his chickens, and the money he makes driving on the side for Uber.