Here is some news that won’t surprise anybody: The government shutdown last month was bad for the economy.
Standard & Poor’s estimated last month the 16-day shutdown will cost the economy $24 billion, indicating both private and public sectors will be hit hard by the impasse.
Now, we have a clearer idea of just what kind of damage the shutdown caused, thanks to a White House report released last week, which offers more proof the shutdown was nothing but bad news.
Some of the “highlights” from the 27-page report:
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Six Head Start grantees, serving close to 6,300 children, were shut down for nine days, reopening only with funds from philanthropists or state governments.
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Home loan decisions for 8,000 low-income, rural families were delayed.
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The Centers for Disease Control (CDC) was unable to put out its weekly flu report or track outbreaks of other diseases.
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Nearly all investigations into alleged workplace violations, such as minimum wage and overtime violations, were suspended.
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About $8.8 million in back payments for 12,100 furloughed workers — an average of around $727.27 per worker — were not collected.
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Close to the entire Office of Foreign Asset Control (OFAC), which implements government sanctions against foreign nations, including Iran and Syria, was furloughed.
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About $4 billion in tax refunds were delayed.
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Employers could not use the E-Verify system to determine prospective employees’ immigration status.
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The Treasury Department was unable to issue export certificates for alcoholic beverages, meaning more than two million liters of beer, wine and distilled spirits could not be shipped.
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Many federal agencies lost revenue: The National Park Service lost $7 million and the Smithsonian missed out on another $4 million.
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About 6.6 million workdays, roughly 18,070 years’ worth of work, were lost to worker furloughs, not including federal employees who worked without pay.
So, if there is still any confusion: No, the shutdown was not a good thing.
Not only did it not result in the repeal or delay of Obamacare or yield any spending cuts, it actually hampered economic growth, causing very real harm to a lot of businesses. It will also end up costing taxpayers (while also causing the GOP’s approval rating to tank).
The question now is whether we will have a repeat of this fight on January 15th, when the funding resolution passed as part of the deal to end the shutdown runs out. Despite some very public “no’s” from some Senators, it remains to be seen whether the House will learn its lesson.
Tags: budget cuts, economy reform, standard and poor's, obamacare, white house report, economic policy, economic recovery, economy, gop, economic reform, government shutdown, budget crisis
Update: The Real Costs of the Shutdown
Here is some news that won’t surprise anybody: The government shutdown last month was bad for the economy.
Standard & Poor’s estimated last month the 16-day shutdown will cost the economy $24 billion, indicating both private and public sectors will be hit hard by the impasse.
Now, we have a clearer idea of just what kind of damage the shutdown caused, thanks to a White House report released last week, which offers more proof the shutdown was nothing but bad news.
Some of the “highlights” from the 27-page report:
Six Head Start grantees, serving close to 6,300 children, were shut down for nine days, reopening only with funds from philanthropists or state governments.
Home loan decisions for 8,000 low-income, rural families were delayed.
The Centers for Disease Control (CDC) was unable to put out its weekly flu report or track outbreaks of other diseases.
Nearly all investigations into alleged workplace violations, such as minimum wage and overtime violations, were suspended.
About $8.8 million in back payments for 12,100 furloughed workers — an average of around $727.27 per worker — were not collected.
Close to the entire Office of Foreign Asset Control (OFAC), which implements government sanctions against foreign nations, including Iran and Syria, was furloughed.
About $4 billion in tax refunds were delayed.
Employers could not use the E-Verify system to determine prospective employees’ immigration status.
The Treasury Department was unable to issue export certificates for alcoholic beverages, meaning more than two million liters of beer, wine and distilled spirits could not be shipped.
Many federal agencies lost revenue: The National Park Service lost $7 million and the Smithsonian missed out on another $4 million.
About 6.6 million workdays, roughly 18,070 years’ worth of work, were lost to worker furloughs, not including federal employees who worked without pay.
So, if there is still any confusion: No, the shutdown was not a good thing.
Not only did it not result in the repeal or delay of Obamacare or yield any spending cuts, it actually hampered economic growth, causing very real harm to a lot of businesses. It will also end up costing taxpayers (while also causing the GOP’s approval rating to tank).
The question now is whether we will have a repeat of this fight on January 15th, when the funding resolution passed as part of the deal to end the shutdown runs out. Despite some very public “no’s” from some Senators, it remains to be seen whether the House will learn its lesson.
Tags: budget cuts, economy reform, standard and poor's, obamacare, white house report, economic policy, economic recovery, economy, gop, economic reform, government shutdown, budget crisis