As the US government shutdown continues with little sign of compromise between the Republicans and the Democrats – euronews got the latest insight on the crisis from our Washington correspondent Stefan Grobe.
Sarah Chappell, euronews: We’re three days into the shutdown now – and it doesn’t seem like the US government has made much headway towards ending the budget crisis. Is there an end in sight?
Stefan Grobe, euronews: We’re not seeing any movement at all. The key player here is John Boehner, the Republican Speaker of the House. He has the power to bring a clean temporary funding bill with no strings attached to the floor – and that would pass because the Democrats and a sufficient number of Republicans would vote for it.
But Boehner isn’t doing that for now, because it would lead to a revolt of the right wing of the Republican party that would probably cost him his speakership.
Sarah Chappell, euronews: With no federal budget in place, what’s the impact across the wider economy? All those federal workers are on unpaid leave of course – but what about other Americans?
Stefan Grobe, euronews: Well, here’s the thing – if you don’t work for the federal government, you’re not feeling a big economic hit from this week’s shutdown.
But the longer it [the shutdown] persists, the more the shutdown will reverberate across the economy, dampening consumer spending – even gumming up the housing market.
The first signs of a major economic distress will probably crop up in the Washington DC area if furlough workers start pulling back on spending – but from there it will spread to the rest of the country.