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The government shutdown is approaching the two-week mark with no end in sight. And now that the holidays are over, its effects are becoming more apparent -- not just on federal workers' salaries, but on everything from science to beer.Here are some surprising impacts of the government shutdown:Low-income moms and their kids may not get nutritional assistance 373
The Dow Jones Industrial Average closed the week on a sour note, giving back some of the gains it had made on three straight days in the green.The Dow closed down 915 points — a 4 percent loss — its first drop since Monday. However, the markets remained up for the week, the first week-over-week gain since February.The day of losses came despite the House passage of a .2 trillion stimulus package that the Trump administration hopes can boost the economy amid an economic slowdown caused by the coronavirus. President Donald Trump is expected to sign the bill into law this afternoon. 600
The Dow fell 460 points Friday as a leading indicator of a US recession and concern about a global slowdown spooked investors.The index shed 1.8%, while the S&P 500 closed down 1.9%. The Nasdaq plunged 2.5%. It was the worst performance for all three major indexes since January 3.The yield on 3-month Treasuries rose above the rate on 10-year Treasuries for the first time since 2007 — a shift that scared Wall Street. Investors have piled back into stocks after a sell-off in late 2018.The flattening yield curve, or the difference between short- and long-term rates, has worried investors for months. A narrowing spread is typically seen as sign that long-term confidence in the economy is waning, which could signal an eventual economic contraction.Friday's flip added to pressure on the Dow that was building before US markets opened.The index stumbled at the bell on poor manufacturing data from Germany, which also spelled trouble for the country's bond market. The yield on Germany's benchmark 10-year government bond fell below zero for the first time since October 2016.All of that news is fueling Wall Street's ongoing concerns about slowing global growth.White House economic adviser Larry Kudlow told CNBC last year that the spread between 3-month and 10-year Treasury yields was important to watch."It's actually not 10s to 2s; it's 10s to 3-month Treasury bills," Kudlow 1402
The cost of living in rural America tends to be less expensive than rent in big cities, but even in a rural town like Stroudsburg, Pennsylvania, many working Americans are struggling to get by.Data from the United Way show 64 percent of households in Stroudsburg are below poverty line or make less than needed to afford basic living expenses.“I am a single mom of three children, ranging from 22-12,” said Shelly McCarthy. “I work from the time I get up at six in the morning until four at night.”For the last four years, McCarthy has worked up to four jobs at the same time.“From waitressing, doing visiting nursing, and also working with developmental adults,” McCarthy explained. “I miss out on a lot of my 12-year old’s activities at school.”Despite all the hours worked, McCarthy has had months where she couldn’t make the mortgage or had funds for much-needed repairs to her home. As for being able to afford healthier food for the family? That’s out of reach.“My daughter has a thyroid disease. So, I miss out on cooking healthy meals for her, because I had to cut down,” said McCarthy. “I couldn’t afford healthy food. I couldn’t afford Mediterranean fish.”“What is happening in America is that the cost of living is outstripping the wages,” said Sarah Jacobi, with Pocono Mountains United Way. “We are seeing over the last 10 years wages increased by 20 percent, but the cost-of-living increased up to 36 percent for a family of four, so people are just falling farther and farther behind.”The United Way has created a data project known as the A.L.I.C.E., which measures the number of people in America who are Asset Limited Income Constrained Employed. It’s essentially the number of people who make above the federal poverty line but less than what they need to afford basic living expenses. “Two out of every five American people today are AIICE,” said Jacobi. “This truly is the American experience that people are living every day.”However, according to the United Way’s data, it doesn’t have to be.“The ALICE report not only does give us that data, to understand where is ALICE and what is their struggle,” said Jacobi. “But it helps us [to] have insight into what are the cost people are truly facing and how we could craft everything from public policy position to help improve lives of people to how we can create programs boots on the ground able to help people.”People like McCarthy are hopeful help will come, either from an economic boost that affects more working-class Americans or public policy that focuses on giving people like her a chance to get ahead. 2595
The House on Tuesday rebuked President Donald Trump over one of his signature issues, passing a resolution to overturn his emergency declaration to unlock money for wall construction at the US southern border.The vote was 245-182. Thirteen Republicans voted with Democrats to pass the measure.The resolution will next be taken up by the Senate, where it will put Republican unity to the test, though Senate leaders have signaled they will not bring it to a vote immediately.It is not yet clear how many Republicans will vote for the resolution in the Senate, but it looks likely to pass the upper chamber, despite the fact that Republicans hold a majority. That would be yet another blow to the President, who has said he will veto the resolution if it comes to his desk.A test of Republican unity in the SenateIf four Republicans join all the Democrats in the Senate to pass the resolution, the measure would then face a presidential veto. The White House formally issued a veto threat on Tuesday afternoon.Congress would then need an overwhelming majority -- two-thirds of its members -- in both chambers to overrule the President. It is unlikely that there would be enough support on Capitol Hill to overturn a veto.So far, there are three Republicans who have signaled they will vote in favor of the resolution. And Senate GOP aides fully expect the resolution to pass when it is brought to the floor.GOP Sen. Thom Tillis of North Carolina, who is 1464