By Samwell Favela / Social Media Editor
LBCC political professors are worried about the national government shutdown.
The Los Angeles Times said leaders have come to an agreement to fund the nation until Jan. 15 and raise the debt ceiling through Feb. 7. The plan still needs to be voted on on Wednesday evening, Oct. 16 and approved by President Obama.
LBCC Director of Government Relations Mark Taylor said, “The shutdown won’t have a direct impact in the foreseeable future.”
If prolonged, however, a massive backlog of paperwork will face all levels of education and students who receive federal aid.
The shutdown backlogging funds is not the only problem students would have to worry about.
If Congress could not come to an agreement before Thursday, Oct. 17, the Washington Associated Press reported that the U.S. could default on its loans, a scenario which could trigger financial markets to plunge and cause another recession.
LBCC political science professor Elliot Rock said Tuesday, Oct. 15, a financial collapse is not certain, but it doesn’t look good to foreign investors.
Rock explained if foreign investors decide that investing in the U.S. is a bad business move, they will no longer loan the federal government money. “There was a time when foreign investors took risks on the U.S. because the dollar was going strong, but since it is going down and they consider it ‘funny money,’ they are no longer willing to invest,” Rock said.
“We currently receive $2 billion a day from foreign investors and any kind of slowdown will pop the dollar bubble that will lead to inflation or deflation,” which he said scares him immensely.
Political science professor Paul Savoie said he was not surprised everything was pushed back.
Savoie said he hopes for better results from the pushback. He is worried that if the U.S. does not meet the Oct. 17 deadline, the Gross Domestic Product could drop 5 percent.
Savoie said if that scenario occurs it may plunge the world into yet another recession.