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Related: About this forumFederal government shutdown could hurt businesses, workers
Congress is once again threatening a shutdown later this year, ostensibly over the usual debt ceiling dispute and disagreements over a spending bill. Political experts say it is mostly because 40 Republican representatives who call themselves the Freedom Caucus want to reduce the power of the speaker of the House. The businesses and workers punished by the shutdown, should it occur, probably wont much care what the reason is.
Economists estimated fourth-quarter 2013 growth in gross domestic product was 0.6 percentage points lower than it would have been without the shutdown, according to the Congressional Research Service. The Bureau of Economic Analysis says growth that quarter was 2.6 percent. Had the government kept operating, fourth-quarter growth would have been 3.2 percent.
The shutdown affected businesses in obvious and not-so-obvious ways. Obviously, businesses that relied directly on government spending to do things like provide computers and paper to government agencies made no sales over those 16 days.
Not so obviously, when 600,000 to 800,000 federal workers arent getting paid, the effect reverberates throughout the economy.
Economists estimated fourth-quarter 2013 growth in gross domestic product was 0.6 percentage points lower than it would have been without the shutdown, according to the Congressional Research Service. The Bureau of Economic Analysis says growth that quarter was 2.6 percent. Had the government kept operating, fourth-quarter growth would have been 3.2 percent.
The shutdown affected businesses in obvious and not-so-obvious ways. Obviously, businesses that relied directly on government spending to do things like provide computers and paper to government agencies made no sales over those 16 days.
Not so obviously, when 600,000 to 800,000 federal workers arent getting paid, the effect reverberates throughout the economy.
Read more: http://www.abqjournal.com/663587
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Federal government shutdown could hurt businesses, workers (Original Post)
TexasTowelie
Oct 2015
OP
DJ13
(23,671 posts)1. The economy is so shaky now that some in the Fed are talking negative interest rates
A shutdown would be catastrophic to the economy at this time.
yeoman6987
(14,449 posts)3. That's what they want. Makes the president look bad
Those 40 can vote no. Don't we have enough votes without them?
2naSalit
(86,031 posts)2. It not only puts so many out of work
It shuts down all research and destroys many projects in progress as well... like throwing all the funding for any of those projects in the trash.
Not that they give a rat's behind about science.