The Economic Catastrophes That Could Soon Erupt If The Government Shutdown Doesn't End Soon

Forbes

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Transcript

00:00The government shutdown does not appear to be ending anytime soon and therefore the economic

00:06effects are going to get much worse and I'm here to break all of them down for you one by one.

00:15So stick ahead. Hey everyone, I'm Spencer Akemian and welcome back to yet another episode of What's

00:21Moving Your Money on Forbes. And on today's episode, we're going to talk about this government

00:26shutdown, how much longer this thing can probably last and what all of the economic effects of this

00:33shutdown will be. And newsflash, they are getting bigger by the day. So I hope you guys enjoy.

00:43Another week has come and gone and there's been no progress on ending this government shutdown.

00:48The both sides, the Republicans and the Democrats are very far off. Supposedly, Jeffries has not even

00:55spoken to Trump yet. Mike Johnson says he is very far off in his requests relative to Chuck Schumer's

01:01request. And now we are in a very complicated situation because if we do not open the government

01:09soon enough, SNAP benefits, food stamp, food assistant benefits are going to expire in seven days from now,

01:17which means that millions of Americans, 40 million Americans to be precise, are at risk of losing

01:24their way of buying food. And what happens to an economy if 15% of the population cannot afford

01:32their food? Newsflash doesn't take a genius to figure this one out. It goes bad, goes really bad,

01:38really fast for an economy. And obviously, needless to say, for the social stability of that country.

01:45One other point here is that the government is heavily concentrated in a few states in the United

01:52States, Virginia, Maryland, District of Columbia, although it's not a state. And these economies

01:59will experience significantly higher impacts from a prolonged government shutdown relative to,

02:05let's say, a state like South Dakota or Wyoming, where maybe it's a little bit less government jobs

02:12and government revenue on a recurring basis and discretionary spending, so on and so forth.

02:18But nonetheless, some of the biggest economies in the United States are at significant risk of falling

02:25into imminent recession should this government shutdown continue. And to be frank, I don't see

02:31this shutdown ending anytime soon. Online betting markets are saying it's going to last another 40

02:36days. Guys, that takes us to December 1st. That's past Thanksgiving. Could you imagine how bad this can get

02:43for some families that may not be able to feed their families in full on Thanksgiving Day? What a

02:49economic, social, and political disaster that would be? And one other thing that we should talk about as

02:55it relates to this government shutdown. Certain parts of the government are really shut down. A lot of

03:02government workers are not working right now. So forget about the fact that they may not be getting

03:08paid just for a second, although obviously that is so important. Certain things are just not getting

03:14done. Certain government jobs are just not getting done. Think about the productivity that is being lost

03:20by a good portion of the American workforce basically being on a two-month unpaid holiday. It's crazy.

03:28All the hours work, all the manpower that was lost, and things will not only be delayed,

03:34but there's going to be a massive backlog, and it's going to be slow for months in the beginning of

03:392026 when this government shutdown eventually ends, if it ever does. Even if we reopen the

03:46government on, let's say, December 1st, you probably will feel the effects of this government shutdown in

03:51your day-to-day life until February or March. This is not ending anytime soon. This is a huge story

03:57for 2026, and we have to pay very close attention. And on this podcast, we always are and we always will.

04:04So it's very interesting. And one final thought before I let you guys go here. We are about to

04:09enter peak traveling season in the United States between Thanksgiving and Christmas. One of the

04:15biggest ways that the government shutdown is affecting your life is by having massive delays in

04:22airports. Air traffic control boots are way understaffed. That is dangerous, needless to say. And beyond that,

04:29the overall airport experience has just gotten way more ineffective, way more delayed, way more slow.

04:36And this is due to the fact that TSA workers, air traffic controllers, all of the above, these are

04:41all government employees. So they are understaffed, they are underpaid, they are fatigued, and this is

04:47beginning to take a toll on them. The travel industry could be enormously impacted by this government

04:53shutdown. If we cannot fix this by Thanksgiving, you bet you're going to see delays. You better bet

05:00you're going to see flights get canceled. People's Thanksgiving plans are going to get ruined. People

05:04that are planning to travel across country to see their parents for Thanksgiving. That's not going to

05:09happen this year if this government shutdown is to continue. And it's a huge mess. And ultimately,

05:16both sides, the Republicans and the Democrats have to get together here and they have to compromise.

05:21The Democrats are going to have to give in a little bit. The Republicans are going to have

05:25to give in a little bit. And they're going to have to reopen our government. Because this government

05:29is for us. It is not for anyone else. It is serving our benefit. If it does not serve our economic,

05:35social, and political benefit, then what is it really for? Thank you guys for watching and I welcome

05:40all your comments and questions as always. And as always, like, comment, and subscribe. Thank you very much.

05:51Thank you very much.

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