Local Economist says Government Shutdown Will be Shortlived - KTVN Channel 2 - Reno Tahoe News Weather, Video -

Local Economist says Government Shutdown Will be Shortlived

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A local economist who spent 25 years on the national economic stage under presidents Nixon, Reagan and Clinton, says the debt ceiling is just the way this country get's its politicians moving.

"We've hit this place dozens of times and we never go past it. No one in Washington expects us to pass it this time. They will settle this next week, pass a temporary continuing resolution and a short extension and the debt ceiling and then you'll see Washington politicians get down to the work of settling their problems," said Brad Schiller, an economist and author in his Tahoe home today.

"It's a sad fact but this is how we put Congress' feet to the fire. They get backed up to the wall and then they settle down and negotiate. They say they won't compromise but they will...they have to and they will."

Schiller says it is through hitting the limits that we get things accomplished.

"We are in the 9th day of this shutdown," Schiller says. "It is appearing to be one of the longer ones. But the longest was in 1995-96 when were shutdown for 21 days. We've seen a few 10-day shutdowns and even an 18-day shutdown and we always bounce back. This time there are 350,000 folks furloughed....that's 350,000 out of the 4.4 million who are federal employees. In my own opinion that's minimal. They all have experience with furloughs, they will all be called back shortly and they will all get their pay retroactively. No one will be out long enough to have their water turned off or for any big economic events to happen. Politicians just do this. They grandstand and when their backs are against the wall they will negotiate."

Schiller says it's happened so many times it's become a growing pain for the country.

'"These crisis' seem to often bring about productive change. Think about it, every time we have moved the country forward it is after Congress has been pushed to the limit. That's when they see that change is needed and they do it. It's almost like a very big growing pain," he says with a chuckle.

And yes he predicts that come next Thursday this will be another government shutdown in the history books.

Written by Erin Breen

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