Huh? The government’s not open? What does that even mean? Can you skip jury duty? Bad news, you can’t. Don’t be tardy for the party, and we hope your case is as juicy as O.J.’s.
Wondering what goes on in the economy when the government shuts down? Here, we break it all down in bite-sized chunks!
Here’s Five Fast Facts on government shutdowns and the economy:
- ⌚ Pay Delay - If you’re a federal worker, government shutdowns could lead to your paycheck drying up…at least in the short term. According to a 2019 law, fed workers are entitled to back pay once things open up again. However, as long as things are closed, people without pay will spend less on goods and services.
- 🧮 Number Crunch - The jobs reports have been all over the place, with more revisions than our high school term paper drafts. But in a government shutdown, we won’t get any numbers from the Bureau of Labor Statistics. There’s also a Labor Department monthly inflation report due in mid-October that could also be delayed.
- 🐌 Slow Roll - If you’re a private company working with government contracts, payment for your work could come to a temporary halt. You might also have issues getting business permits for things like beer and liquor certifications and approvals for small business loans.
- 🪚 A Little Off the Top - In a government shutdown, the powers that be cut back on spending and programs. According to an estimate from Goldman Sachs, a shutdown could reduce annualized GDP (gross domestic product) in Q4 by .15 of a percentage point each week. The good news? Things typically rebound when things reopen.
- ✈️ Traffic Jam - Got a fall getaway planned? Brace yourself for potential headaches. Experts say the travel economy could lose a whopping $1 billion weekly in a shutdown. TSA workers and air-traffic controllers will likely also have a big case of the grumps, as they’ll be working without pay.
🔥Bottom line: You know what else is shut down? Our wallets. That’s right, no more money’s going out…because none is coming in. If you’ve been to the grocery store (and don’t live under a rock), you may have noticed prices creeping up again. Catch the latest in this article.
What are your thoughts on the recent government shutdown?
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