According to the Congressional Budget Office, “the five-week partial government shutdown in 2018-2019 reduced economic output by $11 billion in the following two quarters—including $3 billion that the U.S. economy never regained.”
Moody's Analytics estimated that the 2013 full government shutdown reduced GDP growth by $20 billion.
In the past couple of days, there has been a talk of a government shutdown. This was put into place because Congress has failed to pass a funding legislation that is signed into law by the President. This shutdown means that many people are without jobs and are receiving no pay including the local area business owners. With our current economic state the question is if this shutdown is the right thing to do and how will it proceed to affect our economy. With the Fed increasing interest rates in order to combat inflation. Home prices are still continuing to rise due to the demand outweighing supply. Also, the Consumer Price Index(CPI) is now rising 3.7% annually in August, up from 3.2% in July. Inflation is down from the peak of 8.8% in June 2022 but still above the Fed’s 2% target rate. We already know what a shutdown has done for our economy in the past, will this next one be something similar?
Source
https://www.uschamber.com/economy/economic-viewpoints
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