US govt shutdown will affect 🇺🇸 economy

US govt shutdown will affect 🇺🇸 economy

The federal employees in the executive, legislative, and judicial branches are potentially eligible for unpaid leave, leaving some “essential” workers still in the system. Social security checks, for example, are expected to remain unaffected.

The estimated two weeks shutdown in 2013, however, leave a modest mark on the U.S. economy, with GDP down slightly during that quarter as a result of unpaid workers spending less.

Also, some $4 billion in tax refunds were delayed as a result of furloughed workers in the Internal Revenue Service, with the Office of Management and Budget saying the shutdown cost taxpayers some $2 billion in lost productivity. National parks alone lost some $500 million in revenue, as they, too, shut their gates during the 16-day shutdown.

The shutdown also impacted drug companies with the Food and Drug Administration delaying approval of medical devices and drugs. Investors also lost out on their regular doses of economic data which are often used to buy stocks or price goods.

In the shutdown, federal agencies did not report the jobs numbers or consumer price index, among other data sets. Notably, following the 2013 shutdown, the government passed a bill to retroactively pay its workers for the time lost.

UCJ, UNILORIN.