Federal employees went back to work Monday after the longest shutdown in government history – but the economic effects will be felt for a long time.
A report released Monday by the nonpartisan Congressional Budget Office found that the economy took an $11 billion hit, including $3 billion that’s gone forever, in the 35 days that parts of the federal government went unfunded.
“In CBO’s estimation, the shutdown dampened economic activity mainly because of the loss of furloughed federal workers’ contribution to GDP, the delay in federal spending on goods and services, and the reduction in aggregate demand,” the report said. And that may just be the tip of the economic iceberg. Read more