How Government Shutdowns Inpact the Economy: Lessons from History
Once again, a government shutdown is looming even though House Speaker Kevin McCarthy and President Biden made an agreement earlier this year that was supposed to prevent this exact outcome
“A government shutdown would disrupt the U.S. economy and the lives of millions of Americans who work for the government or rely on federal services.”
— AP News
A government shutdown occurs when Congress fails to pass spending bills before the start of a new fiscal year, which is October 1st. If Congress fails to act before the end of September, then there will be a lapse in funding and all nonessential government functions must stop.
Government shutdowns have been a recurrent issue in the United States’ political landscape, and their impact on the economy has been a subject of considerable debate and analysis. Throughout history, these shutdowns have taken various forms and durations, each leaving its own unique imprint on the economic landscape.
Delving into history, let us explore the consequences of some key government shutdowns on the economy, and look into the complex relationship between government dysfunction and…
