(1/28/19) NBC NEWS – Federal employees were going back to work Monday following the longest shutdown in government history but the economic effects will be felt for a long time.
A report by the nonpartisan Congressional Budget Office found that the economy took an $11 billion hit, including $3 billion that’s gone forever, in the 35 days parts of the federal government went unfunded.
“In CBO’s estimation, the shutdown dampened economic activity mainly because of the loss of furloughed federal workers’ contribution to GDP, the delay in federal spending on goods and services, and the reduction in aggregate demand,” the report, released on Monday, said.
And that may just be the tip of the economic iceberg.
“Underlying those effects on the overall economy are much more significant effects on individual businesses and workers. Among those who experienced the largest and most direct negative effects are federal workers who faced delayed compensation and private-sector entities that lost business. Some of those private-sector entities will never recoup that lost income,” the report said.
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