The economist pointed to the undermining of confidence in the US political system due to the shutdown

The shutdown in the United States does not pose a serious threat to the country's economy, but it undermines confidence in the political system. Ekaterina Kosareva, managing partner of the analytical agency VMT Consult, told Izvestia on October 1.

"A shutdown in the United States always looks dramatic, but if you look at it soberly, it's not a disaster for the economy. The American system is designed so that short-term shutdowns of federal agencies do not bring down either the market or the financial system. The economy as a whole is quite stable, businesses and consumers are living their lives, taxes continue to come in, and the private sector is working at the same pace. That is, there will be no direct impact on GDP, especially if we are talking about a week or two," the economist said.

Nevertheless, she stressed that the political consequences of the shutdown raise serious concerns. This event shows the split between Congress and the White House, which is manifested in their inability to reach an agreement on key issues such as the budget. Kosareva added that for an international audience, such situations are perceived as "chaos in governance," which negatively affects confidence in the American political system.

In addition, the economist pointed out that the main victims of the shutdown are civil servants from "non-emergency" departments who are forced to go on unpaid leave.

"Payments are being delayed, projects are being frozen, and the work of agencies like NASA, EPA, or the Interior Ministry is slowing down. Tourism in national parks is also under attack: facilities there may close, which affects local small businesses. But these are all small tactical inconveniences, not a strategic crisis," she stressed.

Kosareva identified two possible scenarios for lawmakers. The first is to reach an agreement and adopt an interim financing resolution, which will extend the budget process for several months. The second scenario involves budget reconciliation, but this will require significant concessions. She noted that in the context of the growing split between Republicans and Democrats, compromise is becoming an increasingly difficult task.

Close all: The United States is preparing for a government shutdown on October 1

Plans to reduce staff are already being prepared

On the same day, the government was suspended in the United States (shutdown) due to the lack of approval of the draft budget. Because of this, non-authorized personnel of federal agencies will be forcibly sent on unpaid leave. At the same time, some will continue to perform their work duties without a salary.

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