US Government Crisis: The Longest Shutdown in History

US Federal Government Crisis: Day 36

The federal government of the United States shut down on the night of September 30, 2023, due to the failure to approve a new budget. This shutdown marks the first instance of a government shutdown since 2019 and has now entered its 36th day. This situation represents the longest period that the government has remained closed in U.S. history.

Economic Effects: Billions of Dollars Being Lost

According to analysts' estimates, each week of the government shutdown imposes a financial burden of between $10 billion and $30 billion on the U.S. economy. Some economists suggest that this cost has reached $15 billion per week.

The economic impact of the government shutdown that occurred in 2019 was temporary; damage was mitigated through measures like retroactive payments to employees and the reimbursement of halted expenditures. However, the current situation may differ. Economists indicate that today's economic conditions are more fragile than in 2019.

Expected 2% Decline in Growth

The effects of the current government shutdown are not limited to federal employees being unable to receive their paychecks; as the holiday season approaches, millions of Americans are also facing issues accessing food assistance.

Jonathan Millar, a senior economist at Barclays, stated, "Historical experiences show that government shutdowns generally do not create significant disasters, but the current conditions are different." The U.S. Congressional Budget Office predicts that this shutdown could reduce economic growth in the 4th quarter by as much as 2%.