The Government Shutdown Will Cost The United States $300 Million Per Day

The Government Shutdown Will Cost The United States $300 Million Per Day
News
Like Us On Facebook
Like Us On Facebook

A temporary shutdown of the federal government will cost the U.S. at least $300 million a day in lost production, IHS Inc. reports.

Though this is merely a small fraction of America’s $15.7 trillion economy, the financial impact of a shutdown is predicted to gradually increase due to its effect on spending from businesses and consumers.

Bloomberg reports that Lexington, Massachusetts, global market research firm IHS estimates that its predicted 2.2% annual growth in the fourth quarter will be reduced to 0.2% by next week should the government remain inactive.

A 21-day shutdown like the one in 1995 could cut growth by 0.9 to 1.4%, according to Guy LeBas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia.

“Government spending touches every aspect of the economy, and disruption of spending, more than the direct loss of income, threatens to damage investor and business confidence in ways that can seriously harm economic growth,” LeBas told Bloomberg.

Barack Obama said a government shutdown “would throw a wrench into the gears of our economy,” yesterday at the White House.

“The idea of putting the American people’s hard-earned progress at risk is the height of irresponsibility, and it doesn’t have to happen.”

Bank of America Merrill Corp. predicts that a two-week shutdown would reduce federal fourth-quarter growth by 0.5%, while a month-long shutdown would take 2 percentage points from our GDP.

Economists are also concerned about the effect the shutdown will have on the housing market, which accounts for roughly 70% of the economy. Until the shutdown ends, the government will not be able to grant loans for those looking to take out mortgages on homes.

Teresa Johnson, who works for the Transportation Security Administration, told Bloomberg that the shutdown affects many single mothers in her position.

“The shutdown affects me greatly.” said Johnson, 47. “I have a mortgage, and I’m the sole provider for my two daughters, one of whom is in college.”

Another huge issue is the looming debt ceiling, which Congress must agree to raise by October 17 for the U.S. Treasury to continue borrowing the money needed to run most of its programs.

Treasury Secretary Jacob J. Lew has said that failing to raise the U.S.’s borrowing limit would risk putting the country into a “catastrophic” state of default.

Via: Bloomberg, Top Photo Courtesy: Wiki Commons

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Sean Levinson

Sean Levinson loves writing almost as much as he loves ranting about politics. Elite Daily lets him do both, and he couldn't be happier now that he's finally putting his years at SUNY New Paltz to good use. When he's not writing, Sean enjoys nature excursions, playing the guitar and the Ultimate Fighting Championship. Look for him on "Real Time with Bill Maher," where he regularly appears in his most precious fantasies.

More In News

World Gigi Engle

Breaking: A Doctor Has Tested Positive For Ebola In NYC

A Doctors Without Borders physician who returned 10 days ago from a humanitarian trip to Guinea has been diagnosed with the deadly Ebola virus. This makes him the first confirmed case in New York City. The doctor, Craig Spencer, 33, is employed at New York Presbyterian Hospital/Columbia University Medical Center, but has been in isolation at […]

World Sean Levinson

Grandma Caught Selling Up To 100 Pounds Of Weed To Support Grandkids

A 65-year-old Sarver, PA, grandmother pleaded guilty to selling around 100 pounds of marijuana over the past five years. Authorities first charged Candace Kelly of Butler County in October of 2013 when they discovered 64 pounds of hydroponically grown marijuana and approximately $393,000 in cash. Those charges were dropped, however, because the family said that police […]

World Sean Levinson

Artist Creates A Sculpture Of The Madonna That Smells Like Vagina (Video)

Peter De Cupere is known as an olfactory artist because his projects produce certain smells from symbolic images. His newest creation is a statue of the Madonna that emits the scent of female genitalia. Called The Deflowering, the biblical figure is made out of “frozen holy water,” according to the Huffington Post. Inside the statue is […]

Also On Elite

Humor

No, That Photo Of A Menu From A London Brothel In 1912 Isn’t Real

The Internet has the short-term memory of a severely concussed 2-year-old, which means that it falls in love with things it fell in love with just months before. It’s like “50 First Dates” if Drew Barrymore watched fail compilations when she woke up every day. This picture was posted on Reddit in 2010. While it’s […]

World

Malala Yousafzai Has Just Become The Youngest Winner Of The Nobel Peace Prize

Pakistani education activist and feminist icon Malala Yousafzai has become one of two recipients of the Nobel Peace Prize. The 17-year-old is the youngest ever to win the prize. Sharing the award with her is Indian child rights activist Kailash Satyarthi, 60. Yousafzai was shot in the face by Taliban militants on a school bus […]

Sports

Power Of Pink: How The NFL Can Tackle Breast Cancer, For Good

As we are well aware, October isn’t just for pumpkins and Halloween; it’s also national Breast Cancer Awareness Month. With one in eight women battling breast cancer at some point in her life, it is somehow an issue that gets swept under the rug — that is, until now. Wednesday morning, longtime ESPN reporter Shelley Smith […]

Humor

Jimmy Kimmel Compiles Dick-Shaped Weather Patterns From Local News (Video)

Although some people may think I’m well above the age where it’s socially acceptable to laugh at dick jokes, they still send me into a fit of giggles every single time. Maybe I just have an extremely juvenile sense of humor, but if that’s the case, at least I know I’m not alone. Jimmy Kimmel made […]