US Government Shutdown Becomes Longest in History, Costing Billions
The ongoing US government shutdown has now become the longest in the nation’s history, entering its 36th day with deepening economic consequences and no immediate resolution in sight.
Key Takeaways
- Current shutdown surpasses previous 2019 record
- Economic cost estimated at $15 billion per week
- Could reduce Q4 growth by up to 2 percentage points
- Impact extends beyond federal workers to food assistance programs
Record-Breaking Duration and Economic Impact
The shutdown has now exceeded the previous record set during President Donald Trump’s first term in early 2019. Economic analysts estimate the weekly cost to the economy ranges between $10 billion to $30 billion, with several estimates converging around $15 billion per week.
Why This Shutdown Differs
Unlike previous government closures, economists warn this shutdown could inflict more lasting damage. The economy faces greater fragility with Americans concerned about inflation and job stability. The fallout extends beyond federal employees missing paychecks to millions losing full access to food assistance programs during the holiday season.
“The experience, historically, is that government shutdowns don’t cause calamity,” said Jonathan Millar, a senior US economist at Barclays. “This time could be different.”
Depending on the shutdown’s duration, fourth-quarter economic growth could decline by as much as 2 percentage points, creating significant headwinds for the US economy.
