Longest Government Crisis Hits the US | Breaking Economic News
The United States government entered a shutdown on the night of September 30 due to the failure to approve a new budget. This marks the longest government crisis in history, reaching its 36th day today. The previous record was set in 2019, highlighting an alarming trend in federal operations.
Impact on the Economy
The ongoing shutdown is costing the U.S. economy between $10 billion to $30 billion each week. Some analysts estimate the cost at approximately $15 billion weekly. This economic stall could have more severe consequences compared to the 2019 shutdown, which had temporary effects.
Details of the Economic Toll
- The shutdown may reduce fourth-quarter economic growth by as much as 2%.
- Many federal employees are experiencing unpaid leave, impacting their financial stability.
- Access to food assistance is hindered for millions during the holiday season.
Comparative Analysis with Previous Shutdowns
In contrast to past occurrences, the current situation poses a more significant threat. Economic conditions are more fragile today than seven years ago. Citizens express concerns about inflation and job opportunities, exacerbating the crisis’s effects.
Expert Opinions
Jonathan Millar, a senior economist at Barclays, remarked on the historical context, noting that previous government shutdowns did not lead to major catastrophes. However, he cautioned that this scenario might unfold differently.
Future Projections
According to the Congressional Budget Office, the ongoing government crisis is expected to considerably slow economic growth in the near future. Continued monitoring and analysis are crucial as the situation develops.
