A 1-month shutdown: $50 billion economic blow
October 7th, 2013
04:44 PM ET
6 months ago

A 1-month shutdown: $50 billion economic blow

(CNNMoney) - If the week-long government shutdown stretches to a month, it would mean a $50 billion blow to the U.S. economy.

That estimate is actually $5 billion lower than the initial estimate of Mark Zandi, chief economist for Moody's Analytics. He lowered his forecast after the Defense Department recalled nearly half of 800,000 federal employees furloughed last week, and it appeared Congress would quickly approve a measure to pay furloughed workers retroactively.

FULL STORY

Filed under: Government Shutdown
soundoff (30 Responses)
  1. rs

    Yup- That's th action of "real Americans" like the GOP- if you can't win, wreck the ambulance!

    October 7, 2013 04:50 pm at 4:50 pm |
  2. Sniffit

    Mission Accomplished, eh Teatrolls? America needs to be punished for voting Obama back into office and you're just the ones to do it, right? Teach them all a lesson for not choosing you and your ideology instead, huh?

    October 7, 2013 04:57 pm at 4:57 pm |
  3. Ol' Yeller

    Why are the teabaggers voting to shut the government down, but then voting to pay the Workers they are laying off? Does this make sense? If they are so 'fiscally responsible', why are they turning around and payng people for work they aren't allowing them to perform? These guys are geniuses. We won't be wasting any money on their watch, now will we?

    October 7, 2013 05:12 pm at 5:12 pm |
  4. Sniffit

    GOP/Teatrolls:

    Tax an extra $50B out of the top, say, 5% and turn it around to use on useful things, maybe even pay down debt?
    NO...THAT'S TERRIBLE...WOULD RUIN THE ECONOMY AND COST JOBS!!!!

    Shutdown the gov't for a month in the midst of an ideological tantrum that, at its core, amounts to an end run around legislative process and the election results, and thereby poof, kill $50B and take it out of the economy, primarily by not paying middle-class workers? AWESOME, SIGN US UP....THEY NEED TO BE PUNISHED FOR THE ELECTION RESULTS.

    President Mittens approves.

    October 7, 2013 05:22 pm at 5:22 pm |
  5. truth hurts but reality bites

    Obama and the Democrats are shutting down the governemnt for TWO PUNY LITTLE ITEMS. Obama's own special deal for Congress and Obamacare and the insistence that indiviuduals still be forced into Obamacare when everybody else is getting an exemption or delay. Obama and the Democrats want to protect the goodies and continue to jam this train wreck down the throats of the American people. And for that the Democrats and Obama are willing to shut down the government and damage the economy.

    October 7, 2013 05:23 pm at 5:23 pm |
  6. Jeff Frank (R-Ohio)"Right Wing Insanity"

    Anyone in the U.S. that has a credit card, cannot self authorize thier own "higher" spending limit, if 1. they don't have proper collateral, and 2. If you also do not have the income to pay you creditor(s) back from the get go. It does not take a rocket scientist, a Republican, or even a good Democrat to point this out. So when the Creditor of a foriegn power like China or Japan see us crawling them with our tails between our legs begging for more money, just what kind of "late" charges do you think they have in store of us. Maybe the U.S. SHOULD DEFAULT. I'm sure it will be a lesson you will never forget.

    October 7, 2013 05:28 pm at 5:28 pm |
  7. Guest

    Yet another comment thread to fill with blame for the other guys, but when Election Day rolls around, 90% of the House will be reelected. Nearly every commenter here is utterly unable to see beyond party affiliation.

    Baby Boomers have spent every dollar the next two generations will ever pay in income tax and our finances will not recover until long after they have made way for the next generation.

    October 7, 2013 05:35 pm at 5:35 pm |
  8. Data Driven

    @truth hurts but reality bites,

    "exempt"

    LOL. You guys are just hanging on to that, no matter how many times it's debunked, eh?

    Conservatives have wrong opinions on stuff because they don't know anything.

    October 7, 2013 05:35 pm at 5:35 pm |
  9. The Ham

    Funny...
    Like both sides aren't guilty of this crap year in and out... yet people still take sides...

    October 7, 2013 05:35 pm at 5:35 pm |
  10. Wire Palladin, S. F.

    truth . . . – you must have missed the 80 baggers who demanded a shut down in a letter to Boehner, and the Michelle Bachmann giddy moment where she said this was exactly what the GOP wanted.

    October 7, 2013 05:36 pm at 5:36 pm |
  11. Wire Palladin, S. F.

    Can you imagine a republican buying a house and not paying cash for it? The rest of us take out a mortgage of over twice our incomes.

    October 7, 2013 05:38 pm at 5:38 pm |
  12. Thomas

    @truth hurts but reality bites

    who pay's you , you can't possibly believe your own propaganda .

    October 7, 2013 05:43 pm at 5:43 pm |
  13. Guest

    People who know nothing about how national economies work love to pretend that they run just like a household's finances.

    There should be a test that all voters must pass before they are allowed to put whatever clown tricked them this time into office.

    October 7, 2013 05:45 pm at 5:45 pm |
  14. truth hurts but reality bites

    Two very simple items that the Democrats could have easily agreed to. Obama has already mutilated Obamacare in too many ways to mention already. How many THOUSANDS of exemptions have been granted? Delay this, don't do that, grant special waivers to this group, etc. What was the big deal with two more? But no, the Deocrats and Obama insisted on shutting down the government for purely political gain because they though their minions in the press would lay all the blame on the Republicans. NAd they have done exactly that BUT the American people KNOW BETTER. They know all the lies they have told in the past and know they are being fed lies once again by Obama, the Democrats and their lackeys in the MSM.

    October 7, 2013 05:48 pm at 5:48 pm |
  15. The REAL Truth...

    Boehner and the Republicans are shutting down the Federal Govt. over TWO PUNY LITTLE ITEMS. The non-existent special deal for Congress they complain about, and the insistence that individuals get an exemption or delay on ACA. Boehner and the Republicans STILL want to repeal their own health plan after 44 failed attempts and a SCOTUS rejection. And for that the Republicans have shut down the government and damaged the economy. No surprises there.

    October 7, 2013 05:57 pm at 5:57 pm |
  16. teabags over the cliff

    Republicans are penny wise, dollar foolish.

    Since they are making a point, showing their ability to screw up the country; they should include negotiating positions like creationism, legitimate rape, public funding of religious schools, and pro-life.

    October 7, 2013 05:58 pm at 5:58 pm |
  17. Stuffit

    Looks like Obozo and his band of crooks have got the market scared. It fits in nicely with his quest to destroy America and the people who have worked and paid taxes all their lives. He told his true plans to Joe the plumber back in 2008. Steal money from responsible, law abiding people to give it to the welfare frauds, dope addicts and corrupt unions.

    October 7, 2013 06:36 pm at 6:36 pm |
  18. Scott

    This could be solved if the stubborn Democrats and the sad excuse for your president would pass the bills the House sends them. I blame the Democrats and the President 100%. I am tired of all these handout programs like Obama Care the left Wing radicals come up with. All you Democrat posters need to think for your self, instead of drinking the kool-aid.

    October 7, 2013 06:43 pm at 6:43 pm |
  19. shirleymah

    Keep it up guys and we are going to be another Russia , it is both faults they are acting like spoiled brats and if they can't take care of this country they are not touching my health care

    October 7, 2013 06:52 pm at 6:52 pm |
  20. rs

    truth hurts but reality bites

    Obama and the Democrats are shutting down the governemnt for TWO PUNY LITTLE ITEMS. Obama's own special deal for Congress and Obamacare and the insistence that indiviuduals still be forced into Obamacare when everybody else is getting an exemption or delay. Obama and the Democrats want to protect the goodies and continue to jam this train wreck down the throats of the American people. And for that the Democrats and Obama are willing to shut down the government and damage the economy.
    _______________________________
    Pure delusion. The shutdown was promised by House GOP candidates in the run-up to the 2010 elections.

    October 7, 2013 07:05 pm at 7:05 pm |
  21. joe

    down with the GOP. they are bad. very bad. they are a dishonest, extremist, fascists party. they don't give a damn about real people or the country. they are boarding on evil.

    October 7, 2013 07:06 pm at 7:06 pm |
  22. rs

    Jeff Frank (R-Ohio)"Right Wing Insanity"

    Anyone in the U.S. that has a credit card, cannot self authorize thier own "higher" spending limit
    ________________________
    Nor can you decide to not pay your credit card bill as a means to rein in your spending.

    October 7, 2013 07:06 pm at 7:06 pm |
  23. Me

    Nice work fellas

    October 7, 2013 07:54 pm at 7:54 pm |
  24. Melissa

    I think it is obvious that both parties are being stubborn and every single person in congress needs to be replaced regardless if they are Republican or Democratic. There needs to be compromise. If the individuals currently in office are not able to come to an agreement before shutdowns and defaults they don't deserve their position. Republicans wont budge unless obamacare is passed, democrats wont budge period..... I do not agree that this shutdown should be based on not funding obamacare however, cuts do need to be made all over and funding a new program such as that one when we cant afford to pay current bills is reckless. Ignoring all attempts at a compromise until one party agrees with the other is not acceptable.

    October 7, 2013 08:03 pm at 8:03 pm |
  25. Winston Smith

    Wow! It's a blessing to just read some of the posts, and not have to actually hear the idiot(s), saying them. Many are nothing more than parrots for the right wing talk hosts on AM.

    October 7, 2013 08:11 pm at 8:11 pm |
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