VICTORIA, Texas (East Texas News) – The economist Dr. Ray Perryman stated that the government shutdown is affecting residents of East Texas, primarily because federal employees are not receiving their salaries.
“In East Texas, for example, there are roughly 5,000 to 6,000 federal employees who will not receive their salaries,” Dr. Perryman explained.
As a result of the delayed pay, government workers won’t have as much money to spend at local shops and may travel less often.
“During the shutdown, funds for the food banks that the federal government provides to subsidize nutrition nationwide have basically run dry,” he added. “That could have very deep consequences.”
Dr. Perryman added that the government shutdown also makes it harder to engage with the federal government, such as enrolling or changing eligibility for Medicare.
“If you have any issue, whether fiscal or with the IRS, where you need to speak to someone or process a document, everything will be delayed,” he noted. The longest government shutdown lasted more than a month and occurred during President Donald Trump’s first term.
Because of delays in the economic data resulting from the shutdown, Dr. Perryman stated that the lack of transparency could affect investment decisions.
He added that air traffic controllers have a significant influence on ending the shutdown. As more air traffic controllers go unpaid and miss work, Dr. Perryman noted that this can cause travel problems.
“Whether we’re talking about air traffic controllers, the food safety net, paperwork, or the processing of filings, something along the way will create enough public concern to push people to achieve something,” Dr. Perryman added.
