ASA Podcast: The Shutdown Effect: Budgets, Back Pay, and Business Fallout

In this week’s episode of Keeping it Real with Dr. Kuehl, ASA Chief Economist Dr. Chris Kuehl dives into the ongoing government shutdown and the uncertainty surrounding its economic impact. With tensions rising in Washington, Dr. Kuehl explores whether shutdowns truly disrupt the economy or if their effects are short-lived. He breaks down how government employees, contractors, and private businesses are affected—especially those relying on federal projects—and questions why companies are increasingly hesitant to work with the government in the first place.

Dr. Kuehl also turns his attention to the newly proposed “Build Back Better” (BBB) bill, explaining why those in the construction and distribution sectors should pay close attention. The bill could have significant implications for infrastructure investment, yet the ongoing budget standoff threatens to stall progress. He notes that while the broader economic indicators—like GDP growth and low unemployment—remain positive, political gridlock continues to act as a “monkey wrench,” making future stability uncertain.

Looking ahead, Dr. Kuehl warns that even if a deal is reached to end the shutdown, the damage to confidence and long-term planning may linger. He questions why budget decisions repeatedly come only after reaching a crisis point and whether the nation might be edging toward a recession despite current optimism. To close, Dr. Kuehl invites listeners to engage directly by submitting their own economic questions for future episodes via email to bdovichi@asa.net

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