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The effect is rippling beyond missing paychecks to federal services that support much of the economy A lengthy government shutdown would only complicate the employment picture and possibly further erode consumer confidence. By lydia depillis the economic effect of past government shutdowns has been straightforward.

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What it means for workers, federal programs and the economy the federal government shutdown is approaching the second longest on record, with no end in sight and increasing strain on the u.s This has implications for the federal reserve, as they would need to make their next interest rate decision. The consequences of the current federal government shutdown hinge on how long it lasts

If it lasts long time, it could send the u.s

Economic impact past shutdowns have had slight impacts on the economy, reducing growth in the quarter during which the shutdown occurs, but growth increases slightly in the following three months to help make up for it One estimate from oxford economics said a shutdown reduces economic growth by 0.1 to 0.2 percentage points per week. A government shutdown leads to pauses and delays in the collection of economic data