Posted at: 09/27/2013 7:13 PM
Updated at: 09/27/2013 7:17 PM
By: Jenna Lohse
Local Impact of Government Shutdown Felt with Time
The feud between Republicans and Democrats continues as the deadline to prevent a government shutdown approaches.
Congress is moving closer to passing a bill that will keep the government running, but if a decision isn't made by next Tuesday, the federal government will shut down.
We did some digging today and discovered, if the government shuts down, we should be spared any immediate side-affects.
"Government shut down always sounds so scary, but if you really look at it all the essential things will continue,” said Political Analyst Chad Israelson.
A federal government shutdown is something you'd expect would have a major effect, but political analyst Chad Israelson says it sounds more final than it really is.
"For the vast majority of people you're really not going to notice a major impact. The longer it goes on you would start to see more things,” said Israelson.
But Federal Reserve Bank Economist Joe Mahon, who was in Rochester Friday, says it's a different story for those who work for the government.
"How much they make and how much economic activity would be lost just on the fact that they are going on furlough and being unemployed for a short period of time the harder thing to quantify though are what is going to be the lasting effects of that,” said Joe Mahon, Federal Reserve Bank Economist.
Mahon says the more serious economic headwinds caused by a government shutdown is really just uncertainty within the business community.
"No one can really tell what the likelihood of the shutdown is going to be or how it's going to affect their bottom line and that just causes a lot of hesitation is terms of things like investment and employment,” said Mahon.
A prolonged government shutdown would also put Mayo Clinic, the largest private employer in the state, at risk when it comes to funding for research.
"It's our single largest source of funding or medical research and we want to continue those programs because they're strong and they're valuable to the nation not just to us. So the longer the shutdown the more delay and we would simply have to manage through that,” said Dr. Patricia Simmons, Mayo Clinic Executive Director of Health Policy.
The good news, most of the effects caused from a government shutdown could take a while to impact us locally.
"If there is even a government shutdown, I don't see it going beyond ten days you know it just isn't likely,” said Israelson.
The last federal government shutdown was in the mid-nineties. It forced dozens of agencies to close down and lasted for about six days.