What will the effect of the shutdown be on ETX?

What will the effect of the shutdown be on ETX?

TYLER (KYTX) - The re-opening of the federal government is being seen across the country.

Furloughed workers are returning to work, and things are beginning to move again in the economy.

But as we see the return to normal, what will be the effect?

Some who study the economy say we'll feel an impact from the shutdown, but others like Congressman Louie Gohmert, say we didn't have a local impact from the shutdown.

Both agree it's the politics behind it you will feel.

Workers made their way back to work after being furloughed for 16 days.

And the after affects are what have economists, and those invested in the government talking.

"There's always an indirect affect about how the economy as a whole is going to be impacting how it is money paid out, money comes in," says David McClendon, a government professor at Tyler Junior College.

McClendon says 16 days without pay to millions of people, a stagnant economy, and no growth is a bad formula.

He says it will equal close to a 3% reduction in growth, and that equates to jobs and even salary raises in our region.

"The equivalent total loss somewhere in the neighborhood of $12-20 million of lost production to the economy," says McClendon.

"Ought to shock people that the government could be shut down for 16 days and they really didn't feel much about it," says Congressman Louie Gohmert.

But some disagree.

Congressman Gohmert voted against the bill passed Wednesday night, he says the impact was felt before the shutdown, it started with the Affordable Health Care Act.

"This was not a good deal for America and some point people are going to realize it's immoral to keep spending money in massive amounts. 50% more than bringing in almost," says Gohmert.

But regardless of the current deal, McClendon says the fighting along party lines is costing you in the long run.

"All of this brinkmanship is costing the economy. Not healthy for the economy, business and growth does not like this in any shape or form," says McClendon.

McClendon says it will take some time to see some of these negative affects.

And for any reports to come out with hard numbers on any losses.

Ultimately, yes.

But overall, both McClendon and Gohmert say the problem started years ago within the government -- and it's going to take some fighting to get things back now that people are so unhappy with many leaders.

The bill lawmakers voted on last night still has some limits.

There could be another problem come early next year if things aren't ironed out in Washington.


To find out more about Facebook commenting please read the
Conversation Guidelines and FAQs

Leave a Comment