2023-09-27 13:39:17
The salaries of millions of American federal workers are at risk. Those who are already struggling with financial difficulties may be in even greater trouble. Millions of government workers across the country will go without pay indefinitely in the United States at the end of the month as Congress prepares for a government shutdown. House Republicans on Thursday failed to reach a compromise on a new budget, including funding for the Defense Department, as some conservative opponents demanded more spending cuts. If Congress doesn’t act, the federal government won’t be able to pay its 4 million workers following September 30. There is enormous indignation among civil servants. They believe that politicians only think regarding themselves, those who do the dirty work do not matter at all. The shutdown is a particularly uncertain time for many households already suffering from persistently high inflation that has driven up the costs of rent, childcare, groceries, transportation and utilities. In previous government shutdowns, workers received their paychecks as soon as the funding bill passed, but the wait — and uncertainty — between the last check and the arrival of their paycheck has been financially draining for some. Although the U.S. unemployment rate is at a historic low, economists say a government shutdown lasting more than a month might weigh on the U.S. economy. If the shutdown lasts for months, the U.S. will sink into a recession. “It feels like rubbing salt in the wound, because there are so many families who have not yet managed to get back on their feet following the pandemic.” “If the shutdown were to last until the end of the year, it might be enough to push the US into recession,” said Mark Zandi, chief economist at Moody’s Analytics. “A few weeks, no big deal. One month is already reflected in the economic data. After longer than that, it becomes a serious problem, and if it extends to the whole quarter, it probably means a recession,” Zandi said. While Washington has experienced shutdowns before, this one might have a significantly larger impact because it affects many more workers than the last one. Congress has not approved funding for any part of the government, nor has it passed legislation to provide pay for members of the military. In addition to the roughly 4 million federal employees who would not be paid next month during a potential shutdown, millions of self-employed workers would also not receive a paycheck. Stopping military pay would put enormous stress on military families, who are often already living paycheck to paycheck, said retired Air Force Lt. Gen. Brian Kelly, who is now president of the Military Officers Association of America. He said his organization is hearing increasing concerns from its members regarding the impact of the shutdown. “They make a lot of sacrifices with deployments, maybe fighting and different things, and they do it with joy. But in return, they hope that the system will return the same commitment and sacrifice to them,” Kelly said. “If they don’t see that, it certainly undermines a lot of things.” Food banks across the country have begun preparing for an influx of federal workers seeking help. During the most recent shutdown, food banks distributed food boxes to regarding 4,000 households a week at temporary locations set up in grocery store parking lots specifically for federal workers. At the Federal Emergency Management Agency, union president Steve Reaves said he was worried regarding his colleagues, who are already under a lot of pressure. During the most recent shutdown, many had to use their retirement savings to pay off their mortgages. If the shutdown is prolonged, it will have unforeseeable consequences.
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