We’ve all seen the news, and heard the stories, often heartbreaking, from near and afar about the effects of the government shutdown. National parks have been damaged, people have gone weeks without work or pay, others are having to work without pay, and the list goes on. However, as CBS News reports, the economic damage as a result of the government shutdown could exceed the cost of Trump’s border wall, which has been the shutdown’s main point of contention.
As CBS News reports, “Average weekly direct and indirect costs of the partial shutdown, which began Dec. 22, currently add up to $1.2 billion, according to Beth Ann Bovino, S&P Global’s U.S. chief economist.” As many publications have also reported, with the government shutdown now exceeding a month, the effects of it could be felt for years. CBS News continues:
Direct effects of the marathon shutdown include lost productivity from the hundreds of thousands of furloughed workerssince the Dec. 22 closure. While the precise impact has not been calculated, the Bureau of Economic Analysis estimates that federal employees’ lost hours during a 16-day shutdown back in October 2013 reduced fourth-quarter GDP by 0.3 percentage points.
“As in previous shutdowns, the productivity lost from furloughed government workers will never be regained. In real terms, GDP will be lower since no ‘product’ was created,” the S&P Global note said.
will be compensated when the government reopens, but workers in the roughly 4 million private-sector jobs that depend on the federal government won’t receive back pay, according to Capital Economics.
The longer the shutdown extends, the more grave its impact could be if it starts to affect unpaid workers’ consumption, for example.
Read the full story on CBS News.
Meanwhile, read more of the latest major conservation news below.