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The Almighty Buck United States

Shutdown Cost the US Economy $24 Billion 767

Posted by Unknown Lamer
from the congress-blames-lazy-workers dept.
Hugh Pickens DOT Com writes "Time Magazine reports that according to an estimate from Standard & Poor's, the government shutdown, which ended with a deal late Wednesday night after 16 days, took $24 billion out of the U.S. economy and reduced projected fourth-quarter GDP growth from 3 percent to 2.4 percent. The breakdown includes about $3.1 billion in lost government services, $152 million per day in lost travel spending, $76 million per day lost because of National Parks being shut down, and $217 million per day in lost federal and contractor wages in the Washington D.C. metropolitan area alone. Hundreds of thousands of federal workers bore the economic brunt of the shutdown but small businesses also suffered from frozen government contracts and stalled business loans. With the deal only guaranteeing government funding through January 15, the situation could grow worse. 'This is a real corrosion on the economy,' says Mark Zandi, chief economist for Moody's Analytics. 'If we have to go down a similar road in the near future, the costs are going to continue to add up.'"
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Shutdown Cost the US Economy $24 Billion

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  • Really? (Score:2, Insightful)

    by XanC (644172)

    How much does ObamaCare cost the economy?

    • Re: (Score:2, Informative)

      by Anonymous Coward

      Latest estimate I've seen is 9.7T over 10 years.

      • Re: (Score:3, Interesting)

        by DaHat (247651)

        That's a whole lot more than "not one dime"... granted plenty of us also haven't been able to keep our health insurance plan & doctor as promised... so what do I know?

      • Re:Really? (Score:5, Funny)

        by Anonymous Coward on Thursday October 17, 2013 @03:47PM (#45156383)

        That was the lowball estimate. The latest research I've seen is that Obamacare will cost the economy $500 trillion dollars over the next 5 years, will put about 467 million people out of work, and will require mandatory forced sterilizations of anyone who voted Republican or even *thought* about it.

    • Re:Really? (Score:5, Informative)

      by Anonymous Coward on Thursday October 17, 2013 @03:38PM (#45156239)

      If the GAO is correct, it will SAVE circa 4.8 billion per year thanks to outcome based payments

    • Re:Really? (Score:5, Insightful)

      by Anonymous Coward on Thursday October 17, 2013 @03:40PM (#45156265)

      How much does ObamaCare cost the economy?

      Way less than the last few wars.

    • Re:Really? (Score:5, Insightful)

      by gstoddart (321705) on Thursday October 17, 2013 @03:40PM (#45156271) Homepage

      How much does ObamaCare cost the economy?

      How much does having your citizens not being able to afford medical care cost the economy?

      • One could very well extrapolate from sources like unfunded emergency room visits, expensive treatments that could be addressed by preventative care, and comparisons against sane countries that that number comes out in multiple percent of GDP.

        Unfortunately, the corporate middlemen we're stuck with in this particular plan mean that we aren't going to resolve much of that issue, and we get a nice half-measure.

      • Re:Really? (Score:5, Insightful)

        by MickyTheIdiot (1032226) on Thursday October 17, 2013 @04:00PM (#45156605) Homepage Journal

        It's bullshit that this is a -1. This is a legitimate question. When people with no healthcare wait until they need emergency services and then can't pay it that cost is picked up by all of us. If those people can get healthcare before it gets so bad for expensive ER visits it saves EVERYONE money.

    • Re: (Score:3, Insightful)

      by Anonymous Coward

      The same amount if the government hadn't shut down.

    • Re:Really? (Score:5, Interesting)

      by beatljuice (735526) on Thursday October 17, 2013 @03:44PM (#45156337) Homepage
      First off, I don't want ObamaCare. But the fact is it was passed 3 YEARS ago and then vetted by the supreme court (I disagree with that decision by the way). The fiscal conservatives have had plenty of time to make changes to, or eliminate ObamaCare and haven't been able to. While I agree with the conservative stance on ObamaCare I also think the Republicans were basically throwing a temper tantrum here. I think they need to get some work done on small changes that might really happen instead of these big impossible tasks to make headlines. The government has grown unwieldy over the last century. We're not going to shrink it to a proper size in one election cycle.
    • Re:Really? (Score:5, Insightful)

      by Anonymous Coward on Thursday October 17, 2013 @03:45PM (#45156345)

      It helps the economy. Walmart and other businesses were forcing their under paid workers to go on public assistance to get medical. Now private companies won't have to pay.

      Obama care( the 80/20) rule has forced insurance companies to give back 2 Billon dollars to the consumers in California. I received money back as well as some firends. who are self-insured.

      Obamacare law has passed. Attempting now to defund a passed law was a failed exercise by the right-wing tea party. Moderate Republicans also called the tea party,"loony", "crazy".

      The Tea Party almost undermined the US dollar and any idiot who thinks that is a good idea needs to jump in front of a train.

    • by SirGarlon (845873)
      Wrong question. Better question: What are the costs of Obamacare, and how do they shift compare to the current system?
    • by Anonymous Coward on Thursday October 17, 2013 @03:55PM (#45156507)

      How much does ObamaCare cost the economy?

      Let's also include all the folks who go to the ER for "free" health care; which is ultimately passed on to insured patients.

      Let's also consider the folks who have "pre-existing" conditions who can't get health care. They don't go off and just die. They get medical care - for free (there are quite a few docs who have a very BIG hearts and help folks who are TRULY in need as well as non-profit hospitals who must give SOME free care) .

      Al those costs must be made up. So what do they do? Hire creative cost accountants who will bury it in other costs and bills. Perfectly compliant with FASB and IRS rules concerning non-profits and charities.

      tl:dr: regardless of what you think or hear, we all pay one way or another for sick people - lost productivity, higher fees at the doc's office or hospital's, higher insurance fees, etc....

      All "Obama Care" does is put more of it in our faces - and yes, hides some by taxing employers.

      Whatever. I'm not going to argue this - and if you ask a 100 doctors, you'll get 60% of the opinions on either side (it's the joke).

      We have to ask ourselves, do we want to be a culture of "Alpha Humans" and be stressed out about life's necessities or do we want to be "Beta Humans" and work together so that all of us have a decent life.

      I'm all for letting the folks who nothing better to live for than striving to accumulate wealth for the sake of accumulating money, but let's not let their personality disorder affect us all.

    • Re:Really? (Score:5, Insightful)

      by Anonymous Psychopath (18031) on Thursday October 17, 2013 @04:22PM (#45156921) Homepage

      How much does ObamaCare cost the economy?

      An extra $24B now, thanks to those incompetent assholes in Washington.

    • by ultranova (717540)

      How much does ObamaCare cost the economy?

      Does it matter? The economy exists to serve human needs, and getting healthcare while avoiding personal bankruptcy is one of them.

      On the other hand, holding your country - and, arguably, the world economy - hostage in a bid to further your political ideology is a weird combination of pitiful and evil. And it will end up costing far more than $24 billion, for example by giving credibility to China [slashdot.org].

      But I guess every country has the leaders it deserves.

  • by HornWumpus (783565) on Thursday October 17, 2013 @03:34PM (#45156189)

    Because doubling spending will fix the ecomony.

  • Let me guess (Score:5, Insightful)

    by stewsters (1406737) on Thursday October 17, 2013 @03:35PM (#45156195)
    Let me guess, all politicians all blame the "other side" and will let us know how much the "other side" cost us within the week.
  • by Mr D from 63 (3395377) on Thursday October 17, 2013 @03:36PM (#45156213)
    How did all that money just leave the economy? Did someone give it away to another country?
    • by Enry (630) <.enry. .at. .wayga.net.> on Thursday October 17, 2013 @03:42PM (#45156307) Journal

      More like the government lost two weeks of productivity from its employees. And then there were the smaller businesses (coffee shops, dry cleaners, etc.) that didn't get their regular business since government employees were furloughed. When you have 800,000 people out of work and some other numbe rnot getting paid, people cut back on their spending. Will it pick up once government employees are paid for their time off? Probably, but it won't immediately show up (some may use it to pay back bills or penalties, some may save it in case this happens again in 3 months). Contractors that were furloughed are probably screwed out of the time they were off.

    • by Anonymous Coward on Thursday October 17, 2013 @03:43PM (#45156317)

      It's an S&P estimation of how much commerce failed to happen as a result of the shutdown. Lots of people cut off travel plans, tightened their belts, and so on; investment was effected to some degree, as well.

      The shutdown cut back a lot of spending, both government and otherwise.

      There's still a lot of fear that the shutdown's aftereffects could put a squeeze on the holiday quarter, especially if (for example) people with federally-funded jobs tighten back and don't do much holiday shopping out of fear of this shit happening again in January.

      $24b is probably conservative to some extent, depending on if S&P was counting only the duration of the shutdown or was extrapolating for future aftereffects.

  • by Anonymous Coward on Thursday October 17, 2013 @03:36PM (#45156223)

    How much will the Slashdot outage cost the economy?

  • by Anonymous Coward

    Hundreds of thousands of federal workers bore the economic brunt of the shutdown

    This should read, 100's of thousands of federal workers, got an extra 16 day paid vacation this year.

    Hardly what I would call "bearing the economic brunt" of anything.

    • by spiffmastercow (1001386) on Thursday October 17, 2013 @03:46PM (#45156367)

      Hundreds of thousands of federal workers bore the economic brunt of the shutdown

      This should read, 100's of thousands of federal workers, got an extra 16 day paid vacation this year.

      Hardly what I would call "bearing the economic brunt" of anything.

      Or, ya know, "hundreds of thousands of federal workers had to choose between predatory payday loans or defaulting on their mortgages while waiting to get paid and sitting at home every day waiting to find out if they can go back to work". Not quite the same thing as a vacation when you a.) didn't get your last paycheck, and b.) don't know when you have to go back to work.

  • by Bartles (1198017) on Thursday October 17, 2013 @03:45PM (#45156349)
    ...that it cost 24 billion to put up a bunch of paper signs, orange cones, and flimsy barricades.
  • by globaljustin (574257) <justinglobal@gma i l .com> on Thursday October 17, 2013 @03:56PM (#45156529) Homepage Journal

    The shutdown was for nothing more than 'branding' of their party [crooksandliars.com].

    That's not governance in any way shape or form...

    Any GOP congressman who voted for the shutdown should be arrested.

  • by HockeyPuck (141947) on Thursday October 17, 2013 @04:14PM (#45156797)

    I've got some friends who work for the Fed and they loved the shutdown because they a) didn't have to go to work, b) weren't using up vacation days and c) were guaranteed backpay for the days the gov't was shutdown.

    Nothing like a paid vacation.

  • by Marrow (195242) on Thursday October 17, 2013 @04:43PM (#45157239)

    this month. And the next month. And the month after that. They will continue to print until all our problems are solved.
    How does that saying go? : "May you live in interesting times".

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