Government Shutdown’s Serious Effects

The government shutdown was triggered by a disagreement: President Donald Trump wanted 5.7 billion dollars for the infamous wall, but Congress wouldn’t deliver. This was the longest government shutdown in American history, ending Friday, January 25th, at a total of  35 days. The government shutdown has cost the U.S. economy 11 billion dollars. Can we recover? Unfortunately, not completely. Much of the money will be recouped, but the CBO (Congressional Budget Office) calculates that 3 billion dollars will never be recovered. The shutdown affected more than 800,000 workers and delayed 18 billion dollars in federal discretionary spending for compensation and purchases of goods and services, with some services being suspended altogether. Congress passed a bill, however, it only covers spending for the first two weeks in February until a compromise can be made about the wall. Economists expect the gross domestic product (GDP) to fall by 2%. The impact of this government shutdown will become more clear when the Federal Reserve meets to discuss interest rate policies and the latest job figures are released.