DSCC Prepares For 5,000 Furloughs As Whitehall Braces For Economic Impact
With the shutdown in day seven, the City of Whitehall is bracing for what could be a very serious blow to its economy.
A spokesman for the Defense Finance and Accounting Services told 10TV on Monday that the defense agency will furlough thousands of employees later this week.
"Our current cash balances are being monitored closely," said DFAS spokesman Tom LaRock. "As of today, we can continue to operate through Friday. We are continuing to monitor the cash balance in the working capital fund."
The spokesman for the Defense Supply Command Columbus says thousands will be furloughed if the government shutdown does not end soon.
"Our employees are working off same working capital fund," said DSCC spokesman Michael Jones. "We would expect furloughs to begin on Friday."
The combined number of furloughed workers between the Defense Logistics Agency and DFAS is expected to be more than 6,300 workers. That does not include the other 20 approximate tenants at DSCC.
The shutdown is running parallel with a possible government default, and that is spooking financial markets today.
"If lawmakers don't get it together by Oct. 17, it's going to be a collision, an economic collision that's going to wreck our economy, so this is a problem" said Mark Zandi, an economist with Moody's Analytics. "It's a game of chicken and with each passing day this is going to get more anxious for stock investors."