Additional Coverage:
- The US economy could get hit by a double whammy on September 30, if 2 major negotiations are not hammered out (newsbreak.com)
Government Shutdown and Port Strike Looming
The United States faces the threat of a partial government shutdown and a port strike on September 30.
Government Shutdown
Congress must pass a spending bill by September 30 to avoid a shutdown. The House of Representatives has rejected a bill, but negotiations continue. A shutdown would furlough nonessential government workers and disrupt social services and national parks.
Port Strike
Dockworkers at East Coast and Gulf Coast ports face a contract expiration on September 30. The International Longshoremen’s Association has threatened a strike if a new deal isn’t reached. The union is seeking a 77% wage increase over six years.
Economic Impact
Both a shutdown and a strike could have severe economic consequences. A shutdown would reduce GDP and disrupt essential services.
A strike would divert cargo to West Coast ports, potentially causing delays, increased costs, and shortages. The Retail Industry Leaders Association estimates that every day of a strike would require five days to clear the backlog.
Government Intervention
The government could intervene to help resolve the negotiations, but the Longshoremen have expressed opposition. President Biden could request a cooling-off period under the Taft-Hartley Act to pause the strike while negotiations continue.