US EditionFederal shutdowns usually don’t do much economic damage. There are reasons to worry about this one
Economic growth could decline by about 0.15 percentage points per week during the shutdown, with up to 750,000 federal employees furloughed daily, officials said.
- The federal government shutdown that began Wednesday risks greater economic disruption despite financial markets largely shrugging it off.
- Shutdowns usually occur amid budget disagreements and historically cause minimal GDP impact unless extended for weeks, as noted by CBO Director Phillip Swagel.
- This shutdown halted permitting, IRS income verification, and small business loans, while furloughing about 750,000 workers and disrupting national parks.
- Economists estimate each week of closure could reduce Q4 GDP growth by 0.1 to 0.2 percentage points, while President Trump threatens permanent job cuts, which some say may be political bluster.
- Though shutdowns have had little lasting economic impact, experts warn the current fragile job market and political impasse could deepen economic risks if prolonged.
45 Articles
45 Articles
Associated Press News
Federal shutdowns usually don't do much economic damage. There are reasons to worry about this one
Shutdowns of the federal government usually don’t leave much economic damage. But the one that started Wednesday looks riskier, not least because President Donald Trump is threatening to use the standoff to permanently eliminate thousands of government jobs.
A government shutdown is looming: How does it impact the economy?
A partial shutdown of the federal government may begin at midnight barring action by Congress on a spending bill to fund operations which could spark concern over the economic impact, although it's unlikely to have a significant impact based on past shutdowns.The government is funded until 11:59:59 p.m. Eastern Time on Tuesday night, when current funding that runs through the end of fiscal year 2025 ends – creating the potential for a government…
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