Economists seem to be quite pessimistic about the resilience of the US economy recently. It is true that America has withstood some rough currents throughout this year but it is now facing a combination of serious hazards that can create more turbulence. Among the possible challenges are broader strikes in the automotive industry, a looming government shutdown, surging oil prices, and the resumption of student loan payments. If taken separately, these hurdles could be easily overcome. Together, however, they are set to inflict a severe blow to the American economy, The Wall Street Journal warns. "It’s that quadruple threat of all elements that could disrupt economic activity," Gregory Daco, chief economist at EY-Parthenon, said. The first threat is coming from a protracted strike by the United Auto Workers union against General Motors, Ford Motor, and Stellantis. According to Goldman Sachs, such a broad strike will diminish the US annual economic growth by 0.05-0.10 percentage points for each week it persists. The next blow could be a partial government shutdown in case Congress fails to agree on the government budget. If lawmakers cannot reach the deal, as many as 800,000 government workers could be furloughed. The third bump will be the resumption of federal student loan payments on October 1. The final blow will come from accelerated Brent crude prices. As the US Department of Labor reports, oil above $90 per barrel has pushed gasoline prices up by 10.6%. This, in turn, fueled consumer inflation.
