What the Government Shutdown Cost Us

What's Hot


5 Reasons to Shop for a Home in DecemberFamily

Shoppers Boycott Businesses Selling Trump-Branded ProductsBusiness

15 Things You Should Always Buy at a Dollar StoreMore

Giving Thanks: Why Foreigners Find America AmazingAround The House

New Email Phishing Scam Targets Amazon ShoppersMore

50 Best Gifts Under $25 for Everyone on Your ListFamily

Why Washing Your Turkey Can Make You IllFamily

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

The 7 Worst Things to Buy at a Dollar StoreMore

What the Richest 1 Percent Earns in Every StateFamily

10 Ways to Retire Earlier Than Friends on the Same SalaryGrow

The 10 Best Ways to Blow Your MoneyCredit & Debt

The 50 Hottest Toys of the Past 50 YearsFamily

30 Awesome Things to Do in RetirementCollege

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: 10 Strategies to Save Big Bucks on Amazon

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 1,763 more deals!