A government shutdown would cost the U.S. economy $6.5 billion a week, S&P says - News Summed Up

A government shutdown would cost the U.S. economy $6.5 billion a week, S&P says


On Wednesday, S&P Global analysts said a shutdown would cost the economy about $6.5 billion per week, or about 0.2 percent of gross domestic product growth in the fourth quarter of 2017, as the impact of furloughing federal employees ripples across the country. “The timing could not be worse.”Lawmakers have until the end of Friday to reach an agreement to avert the shutdown. The House is slated to vote Thursday on a short-term deal to keep the government open while a longer spending agreement is negotiated, but the risk of shutdown looms. The 16-day government shutdown in 2013 caused about 120,000 fewer private sector jobs to be created, according to the Council of Economic Advisers. Although the government would stop paying federal workers, S&P predicts a shutdown would increase the deficit because of the added cost required to stop and start federal programs.


Source: Washington Post December 07, 2017 15:33 UTC


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