The Price Tag of the U. S. Government Shutdown

The U. S. government shutdown is taking a heavy toll on the economy. The Congressional Budget Office (CBO) has revealed that the shutdown is costing the country around $7 billion each month. This loss won't be recovered even after the government resumes operations. The CBO shared these findings in a letter to the House Budget Committee. They looked at different scenarios based on how long the shutdown lasts. If it goes on for four weeks, the economy could lose $7 billion. If it stretches to six weeks, the loss could be $11 billion. And if it continues for eight weeks, the loss could reach $14 billion. The CBO explained that after the shutdown ends, the economy might see a temporary boost. 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. During the shutdown, spending on goods and services drops. This is because over a million workers are not getting paid. But once the government reopens, spending is expected to rise again. The CBO warned that the longer the shutdown lasts, the worse the economic effects will be. The CBO also noted that about 600, 000 federal employees are still working and getting paid. These are mostly military and law enforcement personnel. However, around 650, 000 employees are on unpaid leave. When the government reopens, these workers will receive back pay, whether they worked or not. 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.