US Economy Strain: Treasury Secretary Warns Shutdown’s Impact Worsens

The economic impact of the ongoing U.S. government shutdown is escalating, according to Treasury Secretary Scott Bessent. He cautions that the situation is worsening significantly. Key sectors are experiencing severe disruptions, and public finances are under strain.

Air Travel Disruptions Ahead of Thanksgiving

Transportation Secretary Sean Duffy has raised alarms regarding potential air travel slowdowns as the Thanksgiving holiday approaches. He warns that air traffic could reduce significantly if the shutdown continues. Flight cancellations and staff shortages are amplifying the crisis in aviation.

Flight Cancellations Mounting

The Federal Aviation Administration (FAA) has implemented flight cuts at major airports due to increasing absenteeism among air traffic controllers. These controllers have gone unpaid for nearly a month. Recent data shows:

• 1,375 flights were canceled on Sunday.
• Over 1,500 cancellations occurred on Saturday.
• Flight reductions began at a rate of 4%, expected to reach 10% by November 14.

Duffy indicated that if the shutdown prolongs, cuts might escalate to 20%. He emphasized that fewer controllers are reporting for work as the pay issues persist. “As we get closer to Thanksgiving travel, you’re going to have air travel slow to a trickle,” he stated.

Air Traffic Controller Shortage

The U.S. has struggled with an air traffic controller shortage for several years, and the situation has become critical during the shutdown. Duffy reported that as many as 15 to 20 controllers retire daily. Efforts to mitigate these shortages include discussions about deploying military air traffic controllers, although their qualifications for civilian air traffic systems remain uncertain.

Political Ramifications and Safety Concerns

Duffy refuted claims that the flight cancellations stemmed from political motivations. He stated, “I had to take action to keep people safe.” The urgency of the matter is clear, with significant disruptions likely leading to frustration among travelers in the coming weeks.

As the shutdown persists, the economic strain is evident across multiple sectors, with implications not only for air travel but also for overall public financial stability. The situation will need urgent attention to prevent further deterioration. El-Balad will continue to monitor developments closely.