Sixth day of U.S. government shutdown: How it impacts Arizona

On October 1st, the U.S. government began a partial shutdown after Republicans and Democrats could not come to an agreement about extending the federal budget at current levels.

The impact of the shutdown could be felt in Arizona, from insurance and medical bills to tourism, like the Grand Canyon. As we enter the sixth day, key economic data has not been released, including job numbers. Now, some experts warn that the economy may be slipping toward a recession.

Jim Rounds, CEO of Rounds Consulting Group, joined “Arizona Horizon” to discuss more on the looming shutdown and how Arizona might see some impacts in the economic landscape of the state.

In his initial research on the effects of the ongoing shutdown, Smalls highlighted severe consequences related to the debate over extending ACA health insurance tax credits. He stated, for Arizona alone, “We did an analysis of how it would impact Arizona, and each billion-dollar loss coming into the state results in about 36,000 jobs that we would lose.”

Rounds also scrutinized the political inertia surrounding the budget. He called for a shift in behavior, noting he was “very disappointed again, with both the far, far right and the far, far left” for failing to find a consensus economic solution.

Rounds suggested that resolution will only come when “indispensable workers” like firefighters and airport personnel, who initially work without pay, finally mount an “uprising” due to public pressure.

Beyond the shutdown, the slowing economy faces further headwinds from trade disputes. Rounds predicted: “The tariffs are going to kick in a little bit with a delay… So we’re going to see some price hikes and additional inflation this winter.”

Despite the challenges, Rounds still offered a cautious outlook: “But I think we will have a recession. I’m hoping it’ll be mild…”