Money Minute: Washington Nears a Deal as Budget Battle Takes Toll on Jobs

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A glimmer of light from Washington. That's just one of five money stories you'll need to know this Tuesday.

Leading senators are said to be this close to reaching a deal to temporarily ending the twin stalemates over the budget and debt ceiling. President Obama is likely to sign on if a deal is hammered out, but House Republicans could still block any plan from coming to a vote. And while the Senate plan would end the immediate threat to the economy, critics note that it simply kicks the issue down to road by just a few months, and we could be right back in the soup before the winter is over.

The Dow Jones industrial average (^DJI) gained 64 points Monday, its fourth straight gain. Markets turned higher on word that lawmakers were closing in on a deal.

Economy (In this May 29, 2013 photo, job seeker Anu Vatal of Chicago, speaks with Patrice Tosi of BluePay, seated, during a care
M. Spencer Green/AP
A report from Macroeconomic Advisers says the crisis-driven government has cost the U.S. economy 900,000 jobs. It says the partisan battles in Washington threaten our economic recovery.

Americans view of the economy depends on how much they earn, and the gap is getting bigger. A survey by Goldman Sachs (GS) finds households making more than $90,000 a year are much more optimistic than those earning $50,000 or less. The wealthier group is more likely to own stocks and own their homes, both of which have increased in value over the past few years.
But the so-called wealth effect hasn't trickled down to others, creating a lack of confidence that could hurt consumer spending as we head into the holiday shopping season.

Amtrak says its nationwide ridership hit an all-time high in its recently completed fiscal year. The railroad carried 31.6 million riders during the year. More than a third of them traveled along the busy Northeast corridor from Washington to Boston, despite the disruptions caused by Hurricane Sandy.

And the Wall Street Journal reports several major drug companies are developing new ways for the body's own immune system to attack cancer cells. Bristol-Myers (BMY), Merck (MRK), Roche and others stand to make billions if their new immunotherapy treatments live up to the results of clinical trials so far, extending the life of some cancer patients by several years.

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Jeremiah

Democrats win - Americans lose.

October 15 2013 at 4:33 PM Report abuse -2 rate up rate down Reply
hagman3926

Obama wants to make it worse than it really is how in sam hill did he he get reelected

October 15 2013 at 4:22 PM Report abuse -3 rate up rate down Reply
barbjalex

If a 10 day shutdown of the bloated bureaucracy can mess with the job market, just shows how screwed up we are...that is just a media cover for the failed Obama policies. They try everything to blame the party who wants to slow our financial train wreck and get themselves more money to buy more vote! So pathetic!!!!!

October 15 2013 at 4:10 PM Report abuse +2 rate up rate down Reply
mike

this is a nonsense article. just liberal media covering for obama's a$$ in
his over-reaching effort to squash the republicans. disgusting --
and you say obama is doing all he can do for the economy?
obama is nothing more than a dirty democrat politician.

October 15 2013 at 4:02 PM Report abuse +2 rate up rate down Reply
davidcpasq

if these 800,000 on furlough are "non-essential" then let's figure out a way to make them obsolete and stop wasting money on a bureaucracy

October 15 2013 at 3:39 PM Report abuse +1 rate up rate down Reply
sandi

there is this simple matter of debt. Look at it as for every trillion of it about 15 billion goes to pay the interest and that's at our low-low int. rate. and to the 17 trillion that already exists we're accum. at the present rate on inflow outflow 1.5 trillion every 2 years. to pay these debts the fed have been demonitizing your money. Almost 10% of our budget goes to servicing the debt and it keeps building

October 15 2013 at 3:26 PM Report abuse +1 rate up rate down Reply
Wolmers1965

The majority of Republicans, especially those in the US House of Representatives, do not give a damn about the unemployed, underemployed and/or low-income workers and small businesses. That is why Republicans fight against, kill and boycott any JOBS bill and even killed employment legislation for veterans of the Iraqi and Afghanistan Wars.

OK … about the 900,000 jobs loss due to the government shut down; those are not all federal government employees being layed off. When you stop construction and repairs on roads, highways, bridges and public buildings and airports, at least 90% of those workers are employees in private for profit businesses; when you close the national monuments, parks and forests … all of the little stores, hotel/motel cabins, and little towns with restaurants, cafes and stores offering tourists grocery & dry goods, fishing equipment and other supplies and local guides lose money and jobs!

Why is it that only about 12% of the adult population knows anything about how the economy works. Cut back on food stamps, well thousands of farm laborers lose work and the American agriculture business takes a serious hit … lower or no profits. When federal workers are furloughed and have no income, they stop spending money, this hurts all local communities and cities around the nation.

October 15 2013 at 3:17 PM Report abuse -2 rate up rate down Reply
1 reply to Wolmers1965's comment
davidcpasq

Republicans fight wasteful GOVERNMENT jobs, not private sector jobs

October 15 2013 at 3:40 PM Report abuse rate up rate down Reply
acqcon

All of this is unnecessary; why doesn't Obama show some leadership skills and pull everyone together? The answer is simple - he doesn't have any leadership skills! He's terrible and incompetent. He couldn't lead a girl scout troop!

October 15 2013 at 3:15 PM Report abuse +6 rate up rate down Reply
hog2191hd

goverment already had made the job market a mess when they let all these illegals get american jobs to hell with congress and the senate fire them all let illegals have their jobs to ,the would do better then they are

October 15 2013 at 3:12 PM Report abuse +2 rate up rate down Reply
1 reply to hog2191hd's comment
kolblh

Look closely at congress, oh, wait you said illegals. I thought it was illiterates, we already have them.

October 15 2013 at 3:37 PM Report abuse -1 rate up rate down Reply
Schlittenburg07

Just how does the Government Shutdown cost 900,000 jobs? Oh wait, they must be referring to those non-essential Big Government "make-work" jobs as they are about all that's been created lately.

Gee, I wonder what throwing-open the door to 30 million illegal immigrants is going to do to the 'ol job market?

October 15 2013 at 2:44 PM Report abuse +4 rate up rate down Reply