According to Senate Majority Leader Harry Reid, a Democrat from Nevada, a bipartisan "compromise" has been reached in order to allow the Federal Aviation Administration to be fully funded once again. Reid formally submitted the following written statement regarding the deal:
"This agreement does not resolve the important differences that still remain," "But I believe we should keep Americans working while Congress settles its differences, and this agreement will do exactly that."
The origins of the impasse? Democrats and Republicans are claiming different issues that have caused the issue. The Democrats are insisting that the dispute is solely about the issues Republicans have in labor issues between the American worker and government, which in this case has been because more of these industries are looking to unionize. The Republicans have countered that a deal has been passed by the House, only to have the Democrats sit on it for two weeks because there were issues that they didn't want included. With the Deocrats recessing for summer on Tuesday until September, the Rebuplican lead House passed a short-term extension that included some of the very issues that the Democrats have been opposed to. The deal as is is hoped to be completed by Friday.
The real victims here have been employees of the FAA, as approximately 4,000 aviation workers have been laid off, along with over ten thousand workers in the construction industry finding themselves laid off as well. According to a spokesman for the FAA, the following hits have been levied against them since the impasse begin:
"The FAA has been unable to collect federal taxes on airline tickets, which has lead to a revenue loss of approximately $30 million a day. If the dispute continues until Congress returns from its summer recess in September, the federal government will be out more than $1 billion in revenue and layoffs could be doubled, possibly tripled.
I genuinely feel for the people who have lost their jobs and income essentially over a big government labor dispute. Many of them have noted that theyve had to dip into their savings, their childrens college funds, and even re-mortgage their homes. I want the final word here to go to Mark LePlasco, one of the furloughed employees:
"We're pretty much going to burn through all of our savings within a month and ... now we're working on programs out there to give us no-interest loans.
I don't think any of us can even fathom going without a paycheck for another month and a half or even longer."
Some questions here to drive discussion:
Does this serve as a sign that we are headed into a deeper recession then we're already in?(Consider the Dow crashing today)
Is this an issue that could have been avoided in some way? How so?
Any other thoughts or things to add to this story I may have left out?
Lets talk about this!