How shutdown is upsetting US economy
As the partial government shutdown moves through its fourth week with no end in sight, the economic blow is being felt not only by federal workers but also by business people, households and travelers across the country. And while the hit to the overall economy so far remains slight, economist foresee real damage if the shutdown drags into February or beyond.
The most hard-hit by the shutdown, of course, are government workers themselves, who missed their first paychecks Friday, and contractors that work closely with the government. Many have had to cut back on purchases, lowering overall consumer spending.
Mark Zandi, chief economist at Moody’s Analytics said the shutdown could inflict longer-term damage on the government — and ultimately on the economy — in ways that might not be obvious. He noted, for example, that some demoralized federal employees, particularly those with vital skills in such areas as cybersecurity, might quit for jobs in the private sector. Federal agencies may also have a harder time recruiting young workers.
“Government workers have options,” Zandi said, particularly with unemployment low and many employers desperate to fill jobs. “This could be quite debilitating to the government.”
https://www.apnews.com/e84857e6005b4acc8caed281ad4b92f4
