US Economic Toll Mounts as Government Shutdown Persists
The Congressional Budget Office projects a $7B to $14B hit to US economic output as the government shutdown disrupts federal spending and workforce compensation. Hundreds of thousands of unpaid workers and stalled services amplify Ripple effects across local economies.
Federal contractors and small businesses reliant on government work face immediate cash FLOW strain, while delayed benefit distributions squeeze consumer spending. Though military and law enforcement pay will eventually be restored, civilian employees remain in limbo.
The CBO notes most economic losses could be recovered post-shutdown, but the deepening standoff threatens to compound damages. Market volatility may intensify as the impasse continues, with crypto assets potentially benefiting from heightened demand for alternative stores of value.
