OKLA. CITY — The fiscal impact of the partial federal government threatens Oklahoma’s economic recovery, state Treasurer Ken Miller said Thursday at the state Capitol.
This week’s shutdown looms over the state’s economic expansion and steady jobless rate of 5.3 percent. Each passing day of a government shutdown only exacerbates the problem, Miller said.
Damage to the state’s economy will depend on how long the government shutdown prevails, Miller said. As of Thursday, members of the House and Senate continued to be deadlocked.
President Barack Obama said Speaker John Boehner could end the shutdown immediately by calling for a full vote in the House. “In the short run, the shutdown will create inconveniences and nuisances,” Miller said.
“In the longer term, it could negatively impact the recovery by dampening demand and eroding confidences. It could eventually inhibit the state’s ability to deliver core services due to the loss of federal funding on shared expenses.”
Of greater concern for the economy is Washington’s futile game of Russian Roulette with the nation’s debt ceiling, Miller continued. Billions of dollars of state investments are tied to federal securities, he said. “The global economy is built on the faith and credit of the United States,” Miller said.
“If that faith were damaged by default, Oklahoma would suffer from the negative effects on the dollar, interest rates, personal investment consumption and jobs.”
People who are furloughed are less likely to spend money that is needed to generate economic growth, Miller said.
The debt ceiling is a separate discussion that raises the stakes. A default of the U.S. government could be catastrophic in jeopardizing the credibility of the United States, Miller warned.
“To actually approve the spending and then tell the Treasury that they can’t pay for it — and if the United States is going to default on their credit rating and not pay its legal obligations — is in my mind just ridiculous,” Miller said.
edmondsun.com
This week’s shutdown looms over the state’s economic expansion and steady jobless rate of 5.3 percent. Each passing day of a government shutdown only exacerbates the problem, Miller said.
Damage to the state’s economy will depend on how long the government shutdown prevails, Miller said. As of Thursday, members of the House and Senate continued to be deadlocked.
President Barack Obama said Speaker John Boehner could end the shutdown immediately by calling for a full vote in the House. “In the short run, the shutdown will create inconveniences and nuisances,” Miller said.
“In the longer term, it could negatively impact the recovery by dampening demand and eroding confidences. It could eventually inhibit the state’s ability to deliver core services due to the loss of federal funding on shared expenses.”
Of greater concern for the economy is Washington’s futile game of Russian Roulette with the nation’s debt ceiling, Miller continued. Billions of dollars of state investments are tied to federal securities, he said. “The global economy is built on the faith and credit of the United States,” Miller said.
“If that faith were damaged by default, Oklahoma would suffer from the negative effects on the dollar, interest rates, personal investment consumption and jobs.”
People who are furloughed are less likely to spend money that is needed to generate economic growth, Miller said.
The debt ceiling is a separate discussion that raises the stakes. A default of the U.S. government could be catastrophic in jeopardizing the credibility of the United States, Miller warned.
“To actually approve the spending and then tell the Treasury that they can’t pay for it — and if the United States is going to default on their credit rating and not pay its legal obligations — is in my mind just ridiculous,” Miller said.
edmondsun.com
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