Summary
Historically, U.S. government shutdowns have caused inconvenience to agency operations but have not significantly affected the overall economy. Past shutdowns have not shown major impacts on GDP growth or unemployment rates. The current administration's approach to a potential new shutdown may introduce changes, but this remains uncertain.
Key Facts
- Government shutdowns usually disrupt individual agencies but don't majorly impact the U.S. economy as a whole.
- In previous shutdowns, key economic indicators like GDP, job growth, and unemployment rates were not significantly affected.
- During the 35-day shutdown from December 2018 to January 2019, employment grew by an average of 221,000 jobs per month.
- The 16-day shutdown in October 2013 saw 220,000 jobs added that month.
- Government workers typically remain employed during shutdowns and do not cut back on spending dramatically.
- There's a possibility that the unemployment rate might temporarily rise by 0.2 percentage points if workers are furloughed.
- The Trump administration may attempt to use the shutdown to dismiss many federal employees, though this could face legal challenges.
- The Office of Management and Budget decides which government workers are essential during a shutdown.
