A one month shutdown: $50 billion economic blow. Article Summary If the already week long government shut down stretches into a month , it could have an over $50 billion impact to the U. S. Economy. With Congress ready to approve retroactive pay for the 800,000 furloughed workers . That would be $200 million a day in pay for "non-essential" federal employees. Also taking a hit is the housing industry.
Mortgage origination has been slowed through Fannies and Freddie Mac, which disrupts the housing market and it's benefits o the recovery. Tourism and travel are being affected due to the closure of national parks. Along with the lack of visas being issued to foreign visitors. Small Business Administration lending has also been suspended , which doesn't allow small business to hire the way they planned. And stock prices fall due to worries about the shutdown, that means less wealth and that leads to less consumer spending.
The longer the shutdown lasts the larger the impact it will have on our economy. Economics: How the shutdown effects you! By compliant uncertain of the amount of time it will take. Many consumers are holding onto those purse strings until they know for certain things will be settled. Opinion Section This article caught my attention because it is covering the government shutdown, which is something we discussed in class. This government shutdown occurred because Congress couldn't agree on a budget. In part due to Obama Care and the ever rising debt ceiling among other reasons .
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In reading this article I have a better understanding of what was all affected by this government shutdown. I have family in the military so obviously they were affected, active duty personnel have been furloughed until further notice. While certain inessential departments at the Federal center in Battle Creek have been reassigned to housekeeping Jobs to keep their pay coming. Eventually if this is not resolved then other government programs will begin to feel the affects, such as social security and Medicare.
Which should not be an option since most of the people participating in these programs have worked hard all heir lives and contributed to these programs , and now rely on that money as their only income. Now everything is up to our governing bodies to resolve. Most economist believe that Congress will raise the debt ceiling and resolve the other issues before things become dire. If not I vote we suspend their pay and use it to pay out to others in need. I know that the delay in these decisions are a political move ,but why wait till you have to lay off soldiers and send Americans into a state of worry before it becomes priority?
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