Nearly Half of U.S. States Face Recession Amid Ongoing Government Shutdown | AI News Digest
As the federal government shutdown stretches into its fourth week, nearly 50% of U.S. states are grappling with economic struggles or facing the threat of recession. A report by Mark Zandi, the chief economist at Moody's Analytics, reveals that 22 states are confronting substantial financial difficulties, worsened by increasing tariffs and disputes over healthcare policies. Maine, Oregon, and Illinois are officially in recession, while California and New York are struggling to maintain stability. Critics, such as Leor Tal from the advocacy organization Unrig Our Economy, contend that congressional Republicans are endangering the economy by declining to renew vital healthcare subsidies. The ongoing shutdown is anticipated to have drastic repercussions, potentially leading to cuts in food assistance programs and considerable losses in the travel industry.
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