Shutdown Would Cost U.S. Economy $300 Million a Day, IHS Says

[xchrom]

http://www.bloomberg.com/news/2013-10-01/shutdown-would-cost-u-s-economy-300-million-a-day-ihs-says.html

A partial shutdown of the federal government would cost the U.S. at least $300 million a day in lost economic output at the start, according to IHS Inc.

While that is a small fraction of the country’s $15.7 trillion economy, the daily impact of a shutdown is likely to accelerate if it continues as it depresses confidence and spending by businesses and consumers.

Lexington, Massachusetts-based IHS estimates that its forecast for 2.2 percent annualized growth in the fourth quarter will be reduced 0.2 percentage point in a weeklong shutdown. A 21-day closing like the one in 1995-96 could cut growth by 0.9 to 1.4 percentage point, according to Guy LeBas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia.

“Government spending touches every aspect of the economy, and disruption of spending, more than the direct loss of income, threatens to damage investor and business confidence in ways that can seriously harm economic growth,” LeBas said yesterday in an interview.

[Make7]

1. Wouldn't a reduction of 0.2% GDP growth translate to the loss of tens of thousands of jobs?

Is this your substitute for a jobs bill, Mr. Speaker? Nice work...

[marmar]

2. k/r

[Gothmog]

3. This estimate is too conservative

I doubt that it measures all of the effects of the shutdown