The Government Shutdown's Effect on the Economy

Izabella Curtis
Mr. Roddy
IHSS
29 January 2019
The Government Shutdown's Effect on the Economy
The government shutdown costed America's economy 11 billion dollars. According to the most
recent study conducted by  the nonpartisan Congressional Budget Office, reflecting lost output from
federal workers, delayed government spending and reduced demand. An estimated hit of $3 billion (or 0.1
percent), was the economic activity during the fourth quarter of 2018. In the economic activity was
estimated to be much greater during the first quarter of 2019, an estimate of $8 billion (or 0.2 percent).
Most of the damage ($11 billion) can be reversed as federal workers return to their jobs, the CBO
estimated $3 billion in economic activity is permanently lost after a quarter of the government was closed
for nearly 35 days. Unfortunately, the government workers who experienced the largest and most direct
negative effect of the shutdown will never recoup that lost income (Mui).
I am speechless. This was the longest government shutdown in America's history. 35 days.
December 22, 2018 to January 25, 2019. The sad part is this is a temporary government opening!
In three weeks we will be back where we started. God I don’t even know where to start. America’s
National Debt is already $21.6 trillion, so adding our “little” 11 billion dollars to that it’s just mind
blowing. This article is important because it let’s everyone know what exactly where we are
economically, money wise, and in a political standpoint. This is relevant to us as Americans because one,
this is our present and our history. Two, it is important to know what's going on currently in our world.
As adolescents, this affects the pricing of items! For example a soda can be dollar but all of a sudden it
becomes 2 dollars or 3. This shutdown was so unnecessary and it really was just sad to see so many
people lose money, lose their homes and depending on food stamps.
Citations
Mui, Ylan. “The Shutdown Cost the Economy $11 Billion – Including a Permanent $3 Billion Loss, Government Says.” CNBC, CNBC, 28 Jan. 2019, www.cnbc.com/2019/01/28/government-shutdown-cost-the-economy-11-billion-cbo.html.

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