Americans increasingly worried about economy amid shutdown
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The report says lost goods and services from furloughed workers’ downtime won’t be regained once the government reopens.
The U.S. government shut down much of its operations on October 1 after Republicans and Democrats failed to reach an agreement to extend funding past the end of the federal fiscal year on September 30.
In past shutdowns, estimates of lost economic activity have reached into the billions of dollars. In the context of a $30 trillion economy, that’s not a lot. But on the margins, economists say it can have an effect.
If the shutdown extends into a second month, then damage starts to accumulate pretty quickly," said Mark Zandi, chief economist at Moody’s,
More than 7 in 10 Americans say current economic conditions in the country are "poor" or "very poor in a new CNN/SSRS poll.
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As the Government Shutdown Continues, Economic Risks Intensify and Experts Warn of Long-Term Impact
Past government shutdowns have been little more than speedbumps to economic growth, but the longer this one drags on, the more economists see reasons this one could be different.
If we don’t know what the quality of the data will be. Well, that’s uncertainty. That’s risky,” says Columbia finance professor Laura Veldkamp.
The U.S. is inching toward the longest government shutdown in American history. NBC News’ Brian Cheung explains how shutdowns impact the U.S. economy.
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The federal government shutdown has already cost the US economy at least $18 billion this year, a figure that “will intensify” in the weeks to come, according to the Congressional Budget Office.
Each week of the ongoing government shutdown could cost the economy $7 billion and reduce GDP growth by 0.1 percentage points, according to an estimate published by EY-Parthenon chief economist Gregory Daco. That cost is a function of reduced pay for federal employees, delayed government procurement of goods and a decline in demand.