What the Government Shutdown Cost Us

What's Hot


How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

Report: Walmart to Begin Selling CarsCars

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Trump Scraps FHA Rate Cut — What Does It Mean for You?Borrow

This Free Software Brings Old Laptops Back to LifeMore

10 Overlooked Expenses That Ruin Your BudgetFamily

Protecting Trump Will Cost Taxpayers $35 MillionFamily

8 Creative Ways to Clear ClutterAround The House

8 Tuition-Free U.S. CollegesCollege

Study: People Who Curse Are More HonestFamily

Tax Hacks 2017: Don’t Miss These 16 Often-Overlooked Tax BreaksTaxes

The 3 Golden Rules of Lending to Friends and FamilyBorrow

Porta-Potties for Presidential Inauguration Cause a StinkFamily

12 Surprising Ways to Wreck Your Credit ScoreBorrow

These Are the 25 Best Jobs in the U.S.Jobs & Work

Nothing good came out of the federal government shutdown, and there was plenty of bad.

The U.S. government is back, and we avoided the worst-case scenario — a default on America’s debt and a resulting worldwide financial collapse. But a government shutdown of more than two weeks didn’t do us any favors either.

For instance, many reports suggested the shutdown would hurt small business, and it did, especially in towns surrounding national parks and other government-dependent areas.

“Pete’s Diner & Carryout, a 50-year-old Capitol Hill eatery frequented by House Speaker John Boehner, lost about 80 percent of its usual business,” Bloomberg says. “For thousands of small businesses, this was no glitch. It’s money that can’t be easily recovered, creating a long-term ripple effect — with the holidays approaching — that will be difficult to forget.”

Here are some of the other effects, according to Bloomberg, CNNTime and other sources:

  • Standard & Poor’s estimates the shutdown cost us at least 0.6 percent of fourth-quarter 2013 gross domestic product growth, or $24 billion.
  • While Congress authorized back pay for federal government employees who were furloughed, thousands of workers for private contractors have no such luck. (Federal agencies award private contractors about $1.4 billion a day, on average.)
  • Consumer confidence — a measure of how comfortable people are spending money right now — plunged to the lowest level in nearly two years. This, among other things, slowed new car sales and home purchases.
  • Some college students in the military dropped out of classes because the Defense Department’s tuition assistance program was shut down.
  • No new craft beers were introduced during the shutdown, because the federal government couldn’t process applications.

Additionally, a Macroeconomic Advisers report suggested the ongoing budget battles are continually increasing unemployment, Bloomberg says. It’s estimated that Congress cost us about 900,000 jobs this year.

And Wednesday’s budget deal wasn’t a permanent fix. It only agreed to fund the government through Jan. 15 and lift the debt ceiling through Feb. 7.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 6 Presidents Day Sales You Should Know About

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,841 more deals!