Government Shutdowns Can Cost the US Billions—Here’s How
Summary
The federal government has shut down because Congress did not pass the needed funding bills. This shutdown happens because both parties cannot agree on a budget plan, especially concerning health care. As a result, many federal services are paused, and federal workers are not being paid, which negatively affects the economy.Key Facts
- Congress failed to pass the funding bills, causing the government to shut down.
- The disagreement mainly involves health care funding and tax credits.
- Federal agencies are reducing services and furloughing workers.
- The Congressional Budget Office estimates furloughed employee payments cost $400 million a day.
- Government shutdowns reduce GDP by disrupting federal spending and services.
- National parks and other tourist sites close, harming tourism.
- There have been 22 shutdowns since 1976; longer ones have a bigger economic impact.
- The recent longest shutdown cost the economy $11 billion, with $3 billion permanently lost.
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