However, problems short of widespread failures in those areas will still have a negative impact on the economy. While some banks will not be completely compliant by the end of 1999, the whole banking system will not collapse. Likewise, even if the electric grids do not shut down as some have worried, it seems wildly optimistic to expect that there will be no disruptions in the generation and distribution of electricity. Many businesses are on interruptible supply contracts so that any shortages fall first on them. Again, the consequences are felt not just by the businesses whose electricity is cut off, but by firms dependent on them.
Similar observations apply to our communication and transportation systems.
The impact on governments can be far-reaching as well. The latest report card from the Subcommittee on Government Management, Information, and Technology on the federal government s progress in preparing for the Year 2000 computer problem was released September 10. International dependencies will affect us also. Even those who say U.S. is OK recognize that many foreign countries are not. There is a general effect of this on us from the likelihood of reduced exports.