The government shutdown(ECON)

Because of lost output from federal workers, delayed government spending and reduced demand, the Congressional Budget Office announced a new analysis stating that the government shutdown has taken around 11 billion dollars out of the United States Economy. The Monday report showed that the government shutdown during the fourth quarter cost the economy around 3 billion dollars. The expected impact of the first quarter in 2019 will be even greater at an estimated cost of 8 billion dollars.  Most of the impact is due to the federal workers who lost their jobs. Although some of the damage done will be mended when the federal workers regain their jobs, a total of 3 billion dollars was permanently lost during the 35 days of shutdown. Because of the shutdown, the expected economic growth will be slowed from last year’s 3.1 percent to 2.3 percent this year.
This is a great example for the economic problem which all societies face. This is the problem of how to make the best use of limited, or scarce, resources. In this case Donald Trump wants to build a wall to keep illegal immigrants from entering the United States. This wall wall will cost around 21.6 billion dollars, not including maintenance. Trump has to get the money from somewhere. He tried to get it from Mexico, but of course that did not work. He also can't just print the money, because that would cause inflation. So he decided to shutdown the government and use the federal worker’s salary to build his stupid wall. In economics obtaining something good will usually make some people unhappy, and there has to be a balance to sustain a healthy economy. We have endless wants, but the resources available to our satisfy needs and wants are limited. We have to try and make the best economic decision, which I do not think Trump did.

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