Summary
The U.S. government shutdown started on Wednesday, and while past shutdowns have had little economic impact, this one is seen as riskier. President Trump has mentioned cutting thousands of government jobs permanently, and about 750,000 federal employees might be laid off temporarily. However, key government benefits will continue uninterrupted.
Key Facts
- Government shutdowns generally have a minor economic impact and are temporary since workers receive back pay.
- The latest shutdown started with differing views between Republicans and Democrats on the budget.
- Past shutdowns, like the one in 2018-2019, have had minimal impact on the U.S. economy.
- Roughly 750,000 federal employees could be temporarily laid off in this shutdown.
- President Trump has mentioned the possibility of permanently cutting government jobs.
- Social Security and Medicare payments will not be affected by the shutdown.
- Economic experts expect any lost economic activity to recover in the following quarter.
- Some government operations that were funded during the last big shutdown will not be funded this time.
