Before the government shut down, the original 2026 Cost of Living Adjustment was scheduled for Wednesday, October 15th, leaving senior citizens with additional questions and although this is positive news, there is still no end in sight for the shutdown.
Economist Hank Lewis says it is a move in the right direction, but he has two concerns regarding staffing. One factor is: Will they get enough personnel who are qualified to do the CPI (consumer price index) evaluations so they can come up with a reasonable amount for the cost of living? Second, that they get the appropriations back in order- so direct deposits are sent out to all the people who have contributed to the social security over the years and are now relying on it.” He said.
Lewis says economy is a science and is not interested in the political climate, stressing the importance of factual data amidst the political discourse.
In addition, the economist points to human nature and the negative mindset that may cause corporations to respond to the shut down in a way reducing their work force.
“The longer there is this uncertainty the more likely it is to breed negativity in the macro economy and that’s what we would not like to have happen.” Lewis said.
As the shutdown goes into day 20, it is unknown when the government will reopen. Lewis says, although he is not optimistic, he is hopeful the 2 parties can settle as previous Democrats and Republicans have in previous historical US shutdowns.