A federal government shutdown commenced at 12:01 a.m. on Wednesday following the inability of Democratic and Republican lawmakers to agree on a temporary funding measure. n nSuch shutdowns affect economic activity through various channels, including delayed wages for hundreds of thousands of federal workers and interruptions in the publication of key economic data. The severity of the economic consequences largely depends on how long the shutdown persists. Prolonged disruptions tend to amplify negative effects on GDP growth and hinder operations for companies dependent on federal services, regulatory approvals, or contract payments.
— news from The Wall Street Journal
— News Original —
How Government Shutdowns Affect the Economy
The federal government shutdown began at 12:01 a.m. Wednesday after Democrats and Republicans failed to reach a deal on a short-term spending plan. n nShutdowns can squeeze the economy in different ways, from missed paychecks for hundreds of thousands of federal employees to the delayed release of crucial economic indicators. But duration matters. The longer the closure lasts, the greater the hit to economic growth and the work of businesses that rely on the federal government’s daily functioning.