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Shutdown With No Clear End Poses New Economic Threat
The economic effect of past government shutdowns has been straightforward. The economy loses some activity for a few weeks, then gains it back after the government reopens. The net cost is basically zero.
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.