The Price Tag of the U. S. Government Shutdown

The Congressional Budget Office (CBO) has revealed that the ongoing U.S. government shutdown is costing the country a significant amount of money.

The Cost of the Shutdown

• $7 billion per month: The shutdown is costing the country around $7 billion each month.
• Losses won't be recovered: Even after the government resumes operations, the loss won't be fully recovered.
• Different scenarios:
• Four weeks: The economy could lose $7 billion.
• Six weeks: The loss could be $11 billion.
• Eight weeks: The loss could reach $14 billion.

The Impact on the Economy

• Temporary boost: After the shutdown ends, the economy might see a temporary boost.
• Permanent losses: However, not all the lost ground will be made up. Some of the losses, between $7 billion and $14 billion, won't be recovered by 2025.
• Spending drops: During the shutdown, spending on goods and services drops because over a million workers are not getting paid.
• Spending rises: Once the government reopens, spending is expected to rise again.
• Longer shutdowns: The longer the shutdown lasts, the worse the economic effects will be.

Federal Employees

• 600,000 employees: About 600,000 federal employees are still working and getting paid. These are mostly military and law enforcement personnel.
• 650,000 employees: Around 650,000 employees are on unpaid leave.
• Back pay: When the government reopens, these workers will receive back pay, whether they worked or not.

The Importance of Resolving the Shutdown

The shutdown started on October 1st and is nearing a full month. The longer it continues, the more it hurts the economy. The CBO's report highlights the importance of resolving the shutdown quickly to minimize the damage.