US Government Shutdown Could Cost Billions: Congressional Forecaster Predicts Economic Impact
The ongoing US government shutdown is expected to have a significant economic impact, with the Congressional Budget Office (CBO) forecasting that between $7 billion and $14 billion in GDP will not be recovered. The CBO predicts that the shutdown will slash real gross domestic product by one to two percentage points in the fourth quarter, although most of this damage will be undone once funding is restored.
The shutdown, now in its 29th day, has led to around 700,000 workers being furloughed and hundreds of thousands of others working without pay. Federal agencies have curtailed their operations, with many services suspended or reduced. The impact on the economy is expected to be felt for several weeks after funding is reauthorized.
The CBO's forecast suggests that if the shutdown were to end today, it would cost $7 billion. However, if it ended after six weeks, on November 12th, the toll would be $11 billion. After eight weeks, on November 26th, the damage could reach as high as $14 billion.
The Federal Reserve has also been affected by the shutdown, with Chairman Jerome Powell stating that the government shutdown has undermined US economic growth but will be reversed once funding is restored. The Fed cut interest rates earlier this month amid concerns about inflation and economic turbulence caused by the shutdown.
In other news, millions of poor and disadvantaged Americans could face trouble accessing funds for home heating starting next month due to the shutdown. The Low-Income Home Energy Assistance Program (LIHEAP) provides critical funding to help low-income families pay their heating bills, but the program is at risk of being delayed or cut off.
Senate Democrats are also warning that Republicans are using vulnerable Americans as "hostages" by refusing to fund the program. Senate Majority Leader Chuck Schumer has called for an end to the shutdown and renewed funding for LIHEAP, which has been a priority for many lawmakers.
The current government shutdown is also being linked to the debate over the Affordable Care Act (ACA), with Democrats pushing for the GOP to extend tax credits that lower premiums for health plans. Republicans have refused, arguing that the ACA has failed to deliver on its promise and that throwing more taxpayer dollars at it will not solve the underlying problems.
With no sign of a resolution in sight, lawmakers in Congress remain out of session, leaving many wondering when and if the shutdown will be resolved. The prolonged recess is seen as a gambit to force Senate Democrats to get on board with Republican funding proposals, which have been met with resistance from Democrats.
The ongoing US government shutdown is expected to have a significant economic impact, with the Congressional Budget Office (CBO) forecasting that between $7 billion and $14 billion in GDP will not be recovered. The CBO predicts that the shutdown will slash real gross domestic product by one to two percentage points in the fourth quarter, although most of this damage will be undone once funding is restored.
The shutdown, now in its 29th day, has led to around 700,000 workers being furloughed and hundreds of thousands of others working without pay. Federal agencies have curtailed their operations, with many services suspended or reduced. The impact on the economy is expected to be felt for several weeks after funding is reauthorized.
The CBO's forecast suggests that if the shutdown were to end today, it would cost $7 billion. However, if it ended after six weeks, on November 12th, the toll would be $11 billion. After eight weeks, on November 26th, the damage could reach as high as $14 billion.
The Federal Reserve has also been affected by the shutdown, with Chairman Jerome Powell stating that the government shutdown has undermined US economic growth but will be reversed once funding is restored. The Fed cut interest rates earlier this month amid concerns about inflation and economic turbulence caused by the shutdown.
In other news, millions of poor and disadvantaged Americans could face trouble accessing funds for home heating starting next month due to the shutdown. The Low-Income Home Energy Assistance Program (LIHEAP) provides critical funding to help low-income families pay their heating bills, but the program is at risk of being delayed or cut off.
Senate Democrats are also warning that Republicans are using vulnerable Americans as "hostages" by refusing to fund the program. Senate Majority Leader Chuck Schumer has called for an end to the shutdown and renewed funding for LIHEAP, which has been a priority for many lawmakers.
The current government shutdown is also being linked to the debate over the Affordable Care Act (ACA), with Democrats pushing for the GOP to extend tax credits that lower premiums for health plans. Republicans have refused, arguing that the ACA has failed to deliver on its promise and that throwing more taxpayer dollars at it will not solve the underlying problems.
With no sign of a resolution in sight, lawmakers in Congress remain out of session, leaving many wondering when and if the shutdown will be resolved. The prolonged recess is seen as a gambit to force Senate Democrats to get on board with Republican funding proposals, which have been met with resistance from Democrats.
this whole thing is just so unnecessary it feels like some people are more worried about winning an argument than actual people's lives they're using these workers and families as leverage to get what they want and it's just not worth the cost i mean $7 billion or even $14 billion that's a lot of money for something that could be resolved with a little bit of compromise 
it's crazy that the economy is taking such a hit because of this shutdown 
the CBO's forecast is wild, like $7-14billion in lost GDP? that's just devastating 
and what's up with the Fed cutting interest rates early this month? seems like they're trying to boost the economy 
anyway, I think we should be supporting these low-income families who are gonna struggle to pay their heating bills next month 
it's not fair that they're being held hostage by Senate Republicans 
gotta get some common sense in there and end this shutdown ASAP 
i got a friend who works for a non-profit and they're getting hit hard because of it... like their program that helps low-income families pay their bills is at risk of being cut off. that's just not right you know? 
it's like republicans are using those families as pawns in this game they're playing with congress. and the fed is getting affected too, i heard chairman powell say something about how it's undermining economic growth but they're gonna reverse it once funding is restored... let's just hope that happens soon 
I mean, think about it, millions of people could face trouble accessing funds for home heating starting next month... that's just not right! 
LIHEAP is such a crucial program, and now it's at risk of being delayed or cut off 
. I hope Congress can get their act together and resolve this soon! 
That's crazy talk! What if they don't get their act together and can't pass any new laws or make decisions on funding? It's gonna be a mess for millions of Americans who are already struggling to make ends meet 
Like, what about LIHEAP? Those poor folks gotta stay warm this winter, but it sounds like the shutdown could put that in jeopardy 
This whole thing is like a game of economic whack-a-mole - one issue gets fixed, but then another pops up. It's hard to keep track of what's really going on here 
That's just messed up. Can't they find a way to work together and solve some real problems? The country needs it 
.
The Congressional Budget Office predicts that the ACA will result in $145 billion in savings over a decade... but Republicans are stalling, saying it hasn't delivered on its promise 
and its not just the economy that's suffering, its also the ppl who are struggling to pay their heating bills... like what if they cant afford it? 
lets hope lawmakers can figure things out soon 
, like we're all just stuck in this endless game of congressional politics 
, waiting for someone to come up with a plan to get us outta here 
. The economic impact is real, though - $7 billion to $14 billion? That's like taking away funding from our favorite Marvel movies 
... I mean, essential programs that help people actually live their lives 
. And it's not just the economy, folks - we're talking about vulnerable Americans who'll be struggling to stay warm this winter 
. It's all just a bunch of nonsense 
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LIHEAP is literally lifesaving for them and now it's at risk because of some partisan bickering 
. And the fact that it's affecting so many people, like those poor families who might lose access to home heating funds... it's just not right 
. Maybe if they could just figure out how to put aside their differences for the greater good... 
. I swear, this whole thing is just a mess 
. And it's not just the employees who are affected, small businesses and industries are also feeling the pinch. I hope Congress gets their act together soon and ends this shutdown already 
.
. Have you guys ever noticed how some politicians are so obsessed with not funding programs that help people? Like, what's the point of being in office if you're just gonna hold people hostage? 
And can we talk about the Fed cutting interest rates... I've been trying to get a mortgage for my dream home for years and now it's like they're making it impossible to qualify 
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I'm all for fiscal responsibility, but not at the expense of people's basic needs.