The U.S. government shutdown has now entered its 38th day, with Republicans firmly rejecting a proposal from Democrats aimed at resolving the impasse. Senate Majority Leader John Thune characterized the Democratic offer as a “non-starter.” The proposal would not only reopen the government but also include a one-year extension of health care subsidies that are set to expire soon. As lawmakers grapple with the ongoing stalemate, Thune has decided to keep the Senate in session over the weekend, a move that President Donald Trump supported on social media.
This prolonged shutdown is creating significant concerns for travelers across the United States, particularly as the busy Thanksgiving holiday approaches. The Federal Aviation Administration (FAA) announced a reduction in air traffic at 40 airports starting Friday, affecting major hubs such as Atlanta, Denver, and San Francisco. Travelers are increasingly worried about potential flight cancellations and delays, prompting some to consider driving instead of flying or booking backup reservations.
As airlines begin to comply with the FAA’s order to reduce service, more than 1,000 flights were canceled on Friday alone. Reports indicate that over 700 additional flights have been scrapped for Saturday. Although the government-ordered slowdown has not yet caused widespread disruptions, industry analysts warn that the situation could worsen as the shutdown drags on, especially as it nears the Thanksgiving holiday. Airports in Chicago, Atlanta, Denver, and Dallas are experiencing the most significant disruptions, with the potential for chaos if the shutdown continues.
In another development, UPS announced it would ground its fleet of MD-11 planes following a tragic crash at its global aviation hub in Kentucky. The decision, made “out of an abundance of caution,” comes after the crash on Tuesday that resulted in the deaths of 14 people, including three pilots. The MD-11 aircraft represent about 9% of UPS’s airline fleet, and the grounding was recommended by the aircraft manufacturer.
On the economic front, President Trump is calling for an investigation into foreign-owned meat packers, alleging they are inflating beef prices in the United States. This move follows recent electoral losses for the Republican Party, where concerns about affordability were prominent issues. While Trump asserts that an investigation is necessary, experts caution that it is unlikely to lead to lower prices at grocery stores. A trade group representing meat packers has denied any wrongdoing.
Despite a low unemployment rate of 4.3%, many unemployed individuals are facing a challenging job market characterized by the slowest hiring pace in over a decade. While layoffs tend to capture headlines, the reluctance of companies to hire new workers is creating a painful situation for those seeking employment. This “low hire, low fire” economy has meant fewer job losses for those currently employed, while the unemployed struggle to find opportunities.
As Thanksgiving approaches, many are concerned about the affordability of holiday meals. Trump recently claimed that Thanksgiving dinner costs would be down 25% this year, citing a prepackaged meal basket from Walmart. However, this assertion has been called misleading, as the basket offers fewer items and different products compared to previous years.
Consumer sentiment has also taken a hit, dropping to a three-year low in November, according to the University of Michigan. The index stood at 50.4, marking a significant decline from the previous month and nearly 30% lower than a year ago. This downturn reflects growing pessimism about personal finances and anticipated business conditions, even as stock market investors reported an 11% increase in sentiment.
With the government shutdown persisting and various economic challenges looming, the urgency for lawmakers to reach a resolution is palpable. Both political parties are under pressure as the impact of the shutdown is felt across multiple sectors, particularly as the holiday season approaches.
