America’s Longest Government Shutdown Now Comes With A Hefty Price Tag

The ongoing government shutdown has not only become the most extensive in U.S. history, but it also appears to be the most detrimental.Traditionally, economic ramifications from shutdowns are short-lived, recovering swiftly upon government resumption. Nevertheless, the 36-day funding interruption, initiated on October 1, is inflicting a considerable – albeit temporary – strain on the world's largest economy.Millions of Americans are deprived of essential food stamp benefits, approximately 1.4 million federal workers remain unpaid while still on duty, and investors and policymakers face uncertainty due to the halt in government data releases."The ongoing shutdown is poised to deliver the severest economic impact of any on record,” stated Alec Phillips, chief political economist at Goldman Sachs.If the shutdown concludes soon, GDP growth may still decline by 1.15 percentage points in the fourth quarter, with estimations of a one to two percentage point reduction from the Congressional Budget Office. While some recovery is anticipated, estimated permanent losses range from $7 billion to $14 billion.