Post-Government Shut Down: What Did It Actually Cost The Economy?

Oct 22, 2013 | by Franck Cushner, CFP®

According to Standard & Poor’s latest research, an estimated $24 billion was lost from the U.S. Economy over the 16-day Government hiatus.   As per TIME, some of the estimated economic costs of the Shut Down are as followed:

  • About $3.1 billion in lost government services, according to the research firm IHS
  • $152 million per day in lost travel spending, according to the U.S. Travel Association
  • $76 million per day lost because of National Parks being shut down, according to the National Park Service
  • $217 million per day in lost federal and contractor wages in the Washington D.C. metropolitan area alone

The Shut Down also stalled small business loans, and furloughed government workers.  Although most government workers will receive their lost pay, government contracts will most likely take a loss.  Under the current stipulations of the agreement to re-open the government, government workers are only guaranteed pay through January 15, 2014.  This will lead to forced savings by the workers, and will potentially lead to a decline in the near future’s GDP growth.

This leads to one of the bigger issues that came of the shut down; the concern about the future of the economy with the raised debt ceiling, and projected decline in the GDP growth of .6% from 3% to 2.4%. 

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