Archives

Uncategorized

The wonks at Moody’s Analytics have looked at the impact of the federal budget shutdown and report the following:

“The 16-day federal shutdown and political brinkmanship around the Treasury debt ceiling hurt the economy. The hit to fourth quarter real GDP is estimated at $20 billion, equal to half a percentage point of growth. Instead of picking up pace as previously expected, U.S. growth will remain stuck near a lackluster 2%.”

The negative impact in North Carolina: around $340 million. Happily, it looks like things could’ve been worse here. Moody’s reports that North Carolina actually experienced less damage than the U.S. as a whole and suffered a proportionately lower impact than 19 other states. Based on our recent record of being near the bottom in every category, that’s a big victory!.

No word yet on whether the McCrory administration is planing some sort of a “we suffered less!” celebration.  

 

NC Budget and Tax Center

In the latest issue of Prosperity Watch, Alexandra Sirota takes a look at food insecurity in North Carolina, and finds that far too many of our state’s residents don’t have enough food to eat. As a result, recent decisions by state government to temporarily halt critical food assistance programs due to the federal government shutdown placed thousands of families at risk of hunger–especially those living in rural North Carolina. See the latest Prosperity Watch for details.

NC Budget and Tax Center

As multiple news outlets are reporting, Congress appears poised to secure a deal that re-opens the federal government, allows the US Treasury to pay its bills by lifting the debt limit, and establishes formal talks to develop a long-term strategy for putting our nation’s fiscal house in order. Assuming Congress passes the deal, these new negotiations set up the opportunity for a new approach to the federal budget—one that includes new revenues to support our economy rather than new spending cuts that increase poverty.

The deal itself is straightforward and includes no significant policy concessions to members of the US House of Representative who precipitated the government shutdown as part of efforts to repeal the Affordable Care Act. For details on the deal, see below the fold:

Read More