The federal government shutdown has significant implications for the US economy. Although short-term shutdowns have little impact, this shutdown is one of the longest in US history. US economy growth projections were already lower for the first quarter of 2019, and the shutdown is leading to a more substantial decrease in these estimates. A longer shutdown has the possibility of decreasing consumer confidence and having a negative impact on the stock market.
The 20-day-old government shutdown could impact the economy if it continues for much longer and hits consumer or business sentiment, economists said, according to CNBC.
As of Jan. 15, the shutdown is the longest since the Carter Administration, moving our economy into a field of unknowns. Economists are being cautious, with JP Morgan Chase cutting cut its forecast for growth in the first quarter by a quarter point to 2 percent as a result of the shutdown. Bank of America Merrill Lynch economists shaved 0.1 percentage point from fourth-quarter growth, bringing that forecast to 2.8 percent, due to the shutdown.
Emma Dahl Comments
Congress really only has one essential duty: pass the budget. Their inability to do this is an indication of the structural issues in our government. We’ve gotten accustomed to government shutdowns, but they are symptomatic of a government that is unable to complete the tasks it needs to in order to take care of citizens. Government shutdowns are not only inconvenient- they also have real impacts on government workers and the US economy.