Commerce Secretary Wilbur Ross on Thursday said he doesn’t understand why some federal workers are seeking out food banks during the government shutdown, saying they have the option of low-interest loans instead.
Speaking on CNBC, Ross argued the 800,000 unpaid federal workers can take out loans to cover their bills as they’re poised to miss another paycheck this week. The billionaire investor also emphasized that they’re poised to get back pay once the shutdown ends.
“These are basically government-guaranteed loans because the government has committed, these folks will get back pay once this whole thing gets settled down,” Ross said. “So there is really not a good excuse why there really should be a liquidity crisis now.”
“Now true, the people might have to pay a little bit of interest, but the idea that it’s paycheck or zero is not a really valid idea,” he continued.
Ross’s interview marked the latest comments from a Trump official that seemed out of step with the thousands of federal workers who are suffering because they live paycheck to paycheck. Federal workers staged a sit-in outside Senate Majority Leader Mitch McConnell’s office on Wednesday demanding an end to the shutdown. J. David Cox, national president of the American Federal of Government Employees, wrote in a letter to President Donald Trump earlier this month arguing the shutdown impacts not only employees but also the beneficiaries of their services.
“They want to be providing vitally important services to their fellow Americans and they want to be paid,” Cox wrote of federal workers.
Federal employees have reported going to homeless shelters to find food for their families, but when asked about the desperate measures, Ross replied: “Well, I know they are, and I don’t really quite understand why.” Ross argued with loans backed by the guaranteed back pay, federal workers should be able to find the money to carry them through the shutdown.
The government shutdown, which impacts around 800,000 federal employees, not including government contractors and recipients of a number of government services, is persisting as Trump and Democrats in Congress battle over $5.7 billion for a border wall with Mexico. The fight has reached unprecedented levels of political theater, with House Speaker Nancy Pelosi delaying the State of the Union address and no concrete resolution in sight.
But Ross said the shutdown won’t be too damaging for the country’s image or economy.
“You’re talking about 800,000 workers and while I feel sorry for the individuals that have hardship cases, 800,000 workers, if they never got their pay — which is not the case, they will eventually get it, but if they never got it, you’re talking about a third of a percent on GDP so it’s not like it’s a gigantic number overall,” he said.
The airline industry, including private airline employees, has spoken out about the impact of the shutdown on aviation safety. TSA officers and air traffic controllers are working without pay, and many are calling out sick in record numbers to find alternative ways to pay their bills.
Ross said he was concerned about the safety risks the shutdown has created, but put the responsibility on the employees themselves.
“It’s kind of disappointing that the air traffic controllers are calling in sick in pretty large numbers,” he said.
Article originally published on POLITICO Magazine
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Source: https://www.politico.com/story/2019/01/24/ross-government-shutdown-food-banks-1122842
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The Article Was Written/Published By: Matthew Choi
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