Shutdown with no clear end poses new economic threat

"This time, the math may not be so benign. As Washington's stalemate continues into its fourth week with no end in sight, it's looking like this could become one of America's longest funding lapses. During the previous record-holder, a 34-day closure in 2018, Congress passed enough appropriations bills to keep more of the government funded. This time, none have been passed."

"Economists estimate the shutdown will trim between 0.1 and 0.2 percentage points off annual growth in economic output for each week it drags on. That amounts to between $7.6 billion and $15.2 billion a week based on hours that government employees aren't working, according to Oxford Economics. The 2018 shutdown trimmed slightly less than 0.1 percentage points off annual growth per week, according to the Bureau of Economic Analysis. That estimation does not capture the ways federal services support"

A prolonged funding lapse has entered its fourth week and risks becoming one of the longest in U.S. history. No appropriations bills have been passed during this closure, unlike the 34-day 2018 shutdown when Congress kept more agencies funded. The White House is attempting to lay off thousands and is threatening to withhold back pay for furloughed workers despite a 2019 law requiring payment. Lost federal work and halted services such as national park tours and new drug reviews are reducing commerce and raising indirect economic costs, with economists estimating weekly GDP growth reductions of 0.1–0.2 percentage points, roughly $7.6 billion to $15.2 billion per week, not counting broader service-related impacts.

Read at Boston.com