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The economic effect of past government shutdowns has been straightforward The federal government is hurtling toward a possible shutdown at a delicate moment for the nation's economy, as a. The economy loses some activity for a few weeks, then gains it back after the government reopens.
The longer the government shutdown continues, the deeper and more extensive its economic scars are likely to be. The federal government is hurtling toward a possible shutdown tuesday night Economic impact past shutdowns have had slight impacts on the economy, reducing growth in the quarter during which the shutdown occurs, but growth increases slightly in the following three months to help make up for it
One estimate from oxford economics said a shutdown reduces economic growth by 0.1 to 0.2 percentage points per week.
A lengthy government shutdown would only complicate the employment picture and possibly further erode consumer confidence. The current government shutdown isn't expected to leave scars on the economy, but that could change if president donald trump follows through on a threat to fire thousands of federal workers. If it is resolved quickly, the costs will be small, but if it drags on, it could send the u.s
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