While a government shutdown is never good for America, if this one lasts for too long, it could have serious economic consequences. The stock market appears to be shrugging it off, but the longer it goes on, the more widespread the effects will be. The impact depends on how long the shutdown lasts, but most experts say that it can shave 0.1 to 0.2 percentage points off growth each week, although those lost weeks would be made up later on.
In a government shutdown, most non-essential federal employees are furloughed. This will cause a delay in services like food assistance programs, federally funded pre-school and childcare, air traffic control, and Smithsonian museums, among many others. Moreover, millions of small businesses that rely on federal contracts will see delays in processing, and local business support services for national parks will be hit hard as they struggle to maintain operations with no pay coming in.
Most of these issues stem from the ongoing budget dispute between Congress and the White House. It is important to remember that these squabbles are not new, and that the current shutdown is the second longest in history. While this issue is primarily political, it is crucial to find a solution that puts working families first, so we can stop them from having to choose between paying their rent and eating. It is time for Democrats to stop playing politics and join Republicans to reopen the government with a clean continuing resolution that allows us to continue debating larger policy questions.