Government shutdown: What’s the cost?

Government shutdown: What’s the cost?

Shutting down the government could cost the federal government well over $2 billion dollars if it resembles the last shutdowns in 1995-1996, though the economy would be harmed in additional ways that are nearly impossible to measure.

The Office of Management and Budget estimated that two government shutdowns in 1995 and 1996, totaling 27 days, cost the federal government $1.4 billion. That’s over $2 billion in today’s dollars on costs like back pay to furloughed federal workers and uncollected fines and taxes. That number doesn’t begin to account for intangible losses in worker morale and productivity, and confidence in the federal government.

Doug Holtz-Eakin, the former director of the Congressional Budget Office, said a short-term shutdown will have a fairly small economic impact. The federal government spends roughly $3 billion a day in discretionary spending, so a disruption like the ones in 1995 and 1996 could wind up being roughly equivalent to the cost of keeping the government running for a day. Continue reading “Government shutdown: What’s the cost?”

Closed for business? Government shutdown history

Closed for business? Government shutdown history

 CONNIE CASS | September 29, 2013 03:39 PM EST |

WASHINGTON — OK, gridlocked politicians we’re used to. But why padlock the Statue of Liberty?

You don’t see other democracies shuttering landmarks and sending civil servants home just because their political parties can’t get along. Belgian civil servants, for example, carried on nicely for a year and a half while their politicians bickered over forming a new government.

The potential for a partial shutdown Tuesday is a quirk of American history. So if you’re bored with blaming House Republicans or President Barack Obama, you can lay some responsibility on the Founding Fathers.

Or blame President Jimmy Carter for his rectitude. Or ex-House Speaker Newt Gingrich for his hissy fit over how he got off Air Force One.

A history of government shutdowns, American-style: Continue reading “Closed for business? Government shutdown history”