"The Impact Will Multiply": Government Shutdown Aftershocks Are Hitting The U.S. Economy

The effects of the government shutdown are starting to reach their way across various industries and affecting the U.S. economy. As Bloomberg reports, some examples include airlines that can't get permission to add new planes and mortgage lenders who are unable to verify income for borrowers. Worse, breweries can’t sell new beer while they’re waiting for approval of new labels.

This is just a small cross-section of the aftershocks occurring from shutting down nine major departments of the government.

Longtime congressional budget aide Stan Collender stated: "The impact will multiply as the days and weeks continue".

Friday marked the 14th day of the shutdown that is the consequence of President Trump not getting the funds he needs for his border wall. Despite a somewhat upbeat press conference that the president held Friday afternoon after meeting with Nancy Pelosi and Chuck Schumer, additional effects from the shutdown are still making their way across the broader economy.

In one example, Southwest Airlines said that the shutdown will likely delay its plans to expand service to Hawaii. Delta is unable to begin service with a new airliner, an Airbus SE A220. Not only are airliners having trouble adding new aircraft to their fleet, they're also having difficulty starting new pilot training programs. These tasks necessitate FAA approval, and most of the FAA's 5,000 employees aren't working. Air traffic controller training has been suspended as well, at a time when staffing for the position is at a 30 year low.

Meanwhile, homebuyers and lenders are also feeling the sting of the shutdown. Lenders rely on IRS income verification, which has gone dark as a result of the shutdown, delaying mortgage approvals across the nation. The IRS has said it is "barred" from this type of paperwork until a spending deal happens. Pete Mills, senior vice president of policy at the Mortgage Bankers Association says that if the delay goes on another week, "it's going to delay closings". 

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