How a shutdown could take a toll on public health

The clock is ticking to the October 1 deadline to avert a government shutdown and many are worried about the effects it could have on the U.S. economy as well as the functionality of critical infrastructure. Some of the institutions that could suffer include organizations such FDA and EPA.

Former Governor of Vermont Howard Dean and Dr. Nahid Bhadelia, Founding Director at Boston University Center for Emerging Infectious Disease joins Yahoo Finance to break down the effects a government shutdown could have on the economy, on healthcare, and what Americans should expect if it happens.

Dr. Bhadelia talks about her work in pandemic preparedness and how the "Pandemic and All Hazards Preparedness Act" (PAHPA) needs to be reauthorized by September 30th and will most likely miss that date due to Congress' inaction. She brings up her concern by saying "the things that would be affected if parts of it are allowed to expire our hospital preparedness. Here we are at the end of a really long public emergency. The question is, have we not learned a lesson to continue to try to invest in these things and ensure there is continuity so that we are prepared" in the future.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

- Governor, let me just stay with you here. Someone that has dealt with big budgets before and big numbers, how would a shutdown impact how the US economy is viewed? How damaging could this be?

HOWARD DEAN: It could be very damaging if it goes on for a while. I think we are the currency of the world as it were. And that probably won't change yet. But if we keep doing this, it will. There's a big difference between the last shutdown and this shutdown in terms of other currencies becoming more and more worldwide, accepted on a worldwide basis. It's probably not the yuan yet, but certainly the euro. And so this is going to be very damaging in the long term. And it's just a product of our division.

It's a product of people being felt left behind. It's a problem of one party playing on grievance politics. And I basically think the platform of the Republican Party is hate and anger. And it's a pretty successful platform right now.

- Doctor, when you think about the furloughs that would take place-- the impact on FDA, EPA activities on food and water, safety, what type of suspension of those operations would consumers also be rights to, perhaps, curtail some of their activity or perhaps just be more cognizant of where they are spending, where they are consuming, and making sure that-- not to kind of be fearmongering here, but still recognizing what the real absence of some of those hazard investigations boards would mean?

HOWARD DEAN: Yeah. I'm so glad you brought that up. Because again, think it's not a joke to shut down the government. The political posturing has real impact on real people. And both FDA and EPA have said that having to furlough their staff. The FDA is going to furlough one fifth of their staff by Sunday. The EPA has said that they won't be able to take on and review new investigations for permits under the Clean Water Act or Clean Air Act. As you mentioned, the Chemical Safety and Hazard Board will suspend open investigations. All of this has an impact on our health.

The other thing that I wanted to mention that's up at September 30, that is also contentious and potentially has an impact on public health is as you know, I work on specifically pandemic preparedness. And the pandemic preparedness and All Hazards Authorization Act to pop up Reauthorization Act is also up on September 30. And the things that would be affected if parts of it are allowed to expire are hospital preparedness. And here we are at the end of a really long public health emergency, and the question is, have we not learned a lesson to continue to try to invest in these things and to ensure that its continuity, so that we're prepared for any new threats that come along.

- All right. Really appreciate the perspective and insights from you both. Howard Dean, former governor of. Vermont and Dr. Nahid Bhadelia, who is the founding director at Boston University's Center for Emerging Infectious Diseases Policy and Research, thank you so much.

HOWARD DEAN: Thank you.

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