The partial federal government shutdown is one week old, but economists are still saying that its impact in Southern California and elsewhere will be limited.

Susanne Whatley: Business analyst Mark Lacter, why is that?

Mark Lacter: If you look back on the history of these things, Susanne, you see that the disputes are resolved before too much damage gets done.  As for Southern California, I notice that KPCC's Alice Walton was asking around over the weekend about the shutdown, and most folks gave it a shrug.  The regional economy is just too diversified - and not especially tied to federal employment.  You have about 46,000 federal workers employed in L.A. County in one capacity or another - that's out of a workforce of nearly 5 million.  And, now it appears as if the federal employees who have been furloughed are going to receive their back wages whenever the shutdown finally ends.

Whatley: That still might make things dicey when it comes time to pay the monthly mortgage...

Lacter: ...but at least money will be available before most folks run into serious liquidity issues.  That's what the shutdown really comes down to - inconvenience rather than dislocation.  And, you see this with the various government services affected: the E-Verify website is down - that lets business owners know whether the people they're wanting to hire can work legally in the U.S., which obviously is important.  The Small Business Administration has stopped processing loan applications, and the Federal Housing Administration is reporting delays in its loan processing, which could mean a home buyer might not complete his or her paperwork all that quickly.

Whatley: But, what if this were to go on for months?

Lacter: Well, then it would create problems, but nobody really thinks that's going to happen.  The real issue, not just nationally and regionally - but globally - is the refusal by Congress to raise the debt ceiling.  The deadline is a week from Thursday, and - of course - there's been all sorts of debate about what this would mean for the economy.

Whatley: All right, so what would this mean for the economy?

Lacter: Well, no one knows exactly.  But, then again, no one knows exactly what would happen if you fell out of a airplane without a parachute.  I just wouldn't want to test it out.  And, of course, let's keep in mind that these are manufactured crises - not reflective of anything that's going on with the real economy.  It's certainly not reflective of anything that's going on in L.A., which saw a big jump in payroll jobs for 2012 - actually it was the sharpest increase since 2005, and nearly double the national rate (that's despite an unemployment rate that remains very high in certain parts of Los Angeles).

Whatley: What about some of the big locally based companies?

Lacter: Well, if your company is publicly traded, there's a good chance your shares took a dip these past few days.  Going back to September 18, the Dow has lost almost 700 points, which - percentage-wise - is not very much, but it is reflective of how uneasy Wall Street has become.  Public companies based in the L.A. area are taking it on the chin - Disney, Amgen, Mattel, DirecTV - their stock prices are all down going back to the middle of September.

Whatley: Even so, hasn't this been a good year for the stock market?

Lacter: It has - those local companies are up anywhere from 13 percent 30 percent year to date, and the Dow is up 14 percent year to date.  Of course, the stock price of a company doesn't always match the amount of money it makes, and this year, even before worries about the debt ceiling, the numbers haven't been as good as they should be at this stage of a recovery.  And, that's why there's particular concern about next week.  You do have to wonder whether a default could have ripple effects involving trade, consumer spending, the dollar - who knows what?  Now, it's still a pretty good bet that saner heads will prevail, although there are no guarantees - and again, if worse came to worse, do you really want to be jumping out of that plane?  Guess we'll find out.

Mark Lacter writes for Los Angeles Magazine and pens the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.

A government shutdown would limit OSHA inspections to “life and property,” and a new initiative on respirable crystalline silica wouldn’t “get off the ground,” agency administrator Doug Parker said Sept. 27.

In a hurry, the Senate approved a bipartisan bill 88-9 to prevent a government shutdown just hours before the deadline on September 30. The bill offers a lifeline to fund the U.S. federal government for an additional 45 days to November 17, 2023.

"Work Comp Matters" - the central location for all your workers' compensation, employment and labor law matters. Steve Appell hosts this weekly podcast from sunny southern California - presenting some…

President Joe Biden has signed into law a package of spending bills passed by the Senate in time to avoid a partial government shutdown.

The post Biden signs package of spending bills just hours before government shutdown deadline first appeared on Federal News Network.

President Biden has signed a $1.2 trillion package of spending bills that Congress just passed, ending the threat of a potential partial government shutdown.

The post Biden signs $1.2 trillion funding package after Senate’s early-morning passage ended government shutdown threat first appeared on Federal News Network.

The yearly fiscal crisis and threats of appropriation lapses affect the contractor industry no less than government employees and the programs they conduct.

The post Government shutdowns stress the whole federal ecosystem first appeared on Federal News Network.

The continuing resolution reauthorizes funds to avoid a 22% pay cut for 11,000 federal employees who spend most of their time overseas.

The post Congress passes stopgap bill to avoid government shutdown, 22% pay cut for feds overseas first appeared on Federal News Network.

Speaker Mike Johnson has postponed a vote on a temporary spending bill that would keep federal agencies and programs funded for six months.

The post Speaker Johnson postpones vote on a bill to avoid a partial government shutdown first appeared on Federal News Network.

Bipartisan negotiations to avoid a government shutdown began in earnest shortly after a failed vote last week in the House.

The post Spending deal averts possible government shutdown, funds government into December first appeared on Federal News Network.

Lawmakers have introduced a $1.2 trillion spending package that sets the stage for avoiding a partial government shutdown for several key federal agencies.

The post Congress unveils $1.2 trillion plan to avert government shutdown and bring budget fight to a close first appeared on Federal News Network.

So here we are: the U.S. federal government is in shutdown mode after Congress failed to pass the budget. We've seen this several times in the past couple of decades, usually ranging from a few hours to a few days, though the most recent one lasted nearly a month from late 1995 into early January 1996.

The partial federal government shutdown is one week old, but economists are still saying that its impact in Southern California and elsewhere will be limited.

Susanne Whatley: Business analyst Mark Lacter, why is that?

Mark Lacter: If you look back on the history of these things, Susanne, you see that the disputes are resolved before too much damage gets done.  As for Southern California, I notice that KPCC's Alice Walton was asking around over the weekend about the shutdown, and most folks gave it a shrug.  The regional economy is just too diversified - and not especially tied to federal employment.  You have about 46,000 federal workers employed in L.A. County in one capacity or another - that's out of a workforce of nearly 5 million.  And, now it appears as if the federal employees who have been furloughed are going to receive their back wages whenever the shutdown finally ends.

Whatley: That still might make things dicey when it comes time to pay the monthly mortgage...

Lacter: ...but at least money will be available before most folks run into serious liquidity issues.  That's what the shutdown really comes down to - inconvenience rather than dislocation.  And, you see this with the various government services affected: the E-Verify website is down - that lets business owners know whether the people they're wanting to hire can work legally in the U.S., which obviously is important.  The Small Business Administration has stopped processing loan applications, and the Federal Housing Administration is reporting delays in its loan processing, which could mean a home buyer might not complete his or her paperwork all that quickly.

Whatley: But, what if this were to go on for months?

Lacter: Well, then it would create problems, but nobody really thinks that's going to happen.  The real issue, not just nationally and regionally - but globally - is the refusal by Congress to raise the debt ceiling.  The deadline is a week from Thursday, and - of course - there's been all sorts of debate about what this would mean for the economy.

Whatley: All right, so what would this mean for the economy?

Lacter: Well, no one knows exactly.  But, then again, no one knows exactly what would happen if you fell out of a airplane without a parachute.  I just wouldn't want to test it out.  And, of course, let's keep in mind that these are manufactured crises - not reflective of anything that's going on with the real economy.  It's certainly not reflective of anything that's going on in L.A., which saw a big jump in payroll jobs for 2012 - actually it was the sharpest increase since 2005, and nearly double the national rate (that's despite an unemployment rate that remains very high in certain parts of Los Angeles).

Whatley: What about some of the big locally based companies?

Lacter: Well, if your company is publicly traded, there's a good chance your shares took a dip these past few days.  Going back to September 18, the Dow has lost almost 700 points, which - percentage-wise - is not very much, but it is reflective of how uneasy Wall Street has become.  Public companies based in the L.A. area are taking it on the chin - Disney, Amgen, Mattel, DirecTV - their stock prices are all down going back to the middle of September.

Whatley: Even so, hasn't this been a good year for the stock market?

Lacter: It has - those local companies are up anywhere from 13 percent 30 percent year to date, and the Dow is up 14 percent year to date.  Of course, the stock price of a company doesn't always match the amount of money it makes, and this year, even before worries about the debt ceiling, the numbers haven't been as good as they should be at this stage of a recovery.  And, that's why there's particular concern about next week.  You do have to wonder whether a default could have ripple effects involving trade, consumer spending, the dollar - who knows what?  Now, it's still a pretty good bet that saner heads will prevail, although there are no guarantees - and again, if worse came to worse, do you really want to be jumping out of that plane?  Guess we'll find out.

Mark Lacter writes for Los Angeles Magazine and pens the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.

What will happen to WIC, SNAP and the federal school lunch program if the shutdown is prolonged?

Refuge protectors weigh in on the shutdown's impact.

Fort Lauderdale Foreclosure Defense Attorneys look to ease the government employees affected by the current shutdown by helping them with their foreclosure and housing needs, and deferring payment for such services until they return to work.

Following the enactment of the continuing resolution, staff at Grand Canyon National Park resumed regular operations Tuesday, January 23, 2018. https://www.nps.gov/grca/learn/news/visitor-services-resume.htm

During the partial shutdown of the federal government due to the lapse of appropriations, national parks will remain as accessible as possible while still following all applicable laws and procedures. Park roads, lookouts, and trails at Grand Canyon National Park will remain accessible to visitors. Visitor services provided by park concessioners and other entities will also remain open and operational, including lodging, restaurants and food service, grocery stores, retail locations, bicycle rental, concessioner provided tours, and park shuttle operations. https://www.nps.gov/grca/learn/news/grand-canyon-np-accessible-to-public-during-partial-government-shutdown-2018-12-22.htm

Following the enactment of the continuing resolution, staff at Grand Canyon National Park will resume regular operations this week, including opening visitor centers, offering ranger programs, opening permit offices, and collecting fees at entrance stations. https://www.nps.gov/grca/learn/news/grand-canyon-visitor-services-reopen-following-shutdown.htm

Take a look at some of the ways that the shutdown is bad for the environment.

When the government furloughed park workers responsible for emptying trash bins, it came as welcome news for bears.

The New Yorker's Ryan Lizza spoke with Fresh Air's Dave Davies about the Keystone XL pipeline and how because of the government shutdown, now is a good time to take action on climate change.

New York Sweet Chick restaurants co-owned by rapper Nas and John Seymour are offering free chicken and waffles to furloughed workers until the partial government shutdown ends.

Leaders differ on immigration deal details but both sides say they would like to see find ways to avoid future shutdowns with current government funding set to expires in less than three weeks.