Economics: How the shutdown effects you!
Writing Assignment #2
Crystal Maitland Economics 201
10/08/13
A one month shutdown: $50 billion economic blow.
Article Summary
If the already week long government shut down stretches into a month , it could have an over $50 billion impact to the U.S. Economy. With Congress ready to approve retroactive pay for the 800,000 furloughed workers . That would be $200 million a day in pay for “non-essential” federal employees. Also taking a hit is the housing industry. Mortgage origination has been slowed through Fannie and Freddie Mac, which disrupts the housing market and it's benefits to the recovery. Tourism and travel are being affected due to the closure of national parks. Along with the lack of visas being issued to foreign visitors. Small Business Administration lending has also been suspended , which doesn't allow small business to hire the way they planned. And stock prices fall due to worries about the shutdown, that means less wealth and that leads to less consumer spending. The longer the shutdown lasts the larger the impact it will have on our economy. Though some say that the lost business activity will be made up in time, they are uncertain of the amount of time it will take. Many consumers are holding onto those purse strings until they know for certain things will be settled.
Opinion Section
This article caught my attention because it is covering the government shutdown, which is something we discussed in class. This government shutdown occurred because Congress couldn't agree on a budget. In part due to Obama Care and the ever rising debt ceiling among other reasons . In reading this article I have a better understanding of what was all affected by this government shutdown. I have family in the military so obviously they were affected, active duty personnel have been furloughed until further notice. While certain inessential departments at the Federal center in Battle Creek have
Crystal Maitland Economics 201
10/08/13
A one month shutdown: $50 billion economic blow.
Article Summary
If the already week long government shut down stretches into a month , it could have an over $50 billion impact to the U.S. Economy. With Congress ready to approve retroactive pay for the 800,000 furloughed workers . That would be $200 million a day in pay for “non-essential” federal employees. Also taking a hit is the housing industry. Mortgage origination has been slowed through Fannie and Freddie Mac, which disrupts the housing market and it's benefits to the recovery. Tourism and travel are being affected due to the closure of national parks. Along with the lack of visas being issued to foreign visitors. Small Business Administration lending has also been suspended , which doesn't allow small business to hire the way they planned. And stock prices fall due to worries about the shutdown, that means less wealth and that leads to less consumer spending. The longer the shutdown lasts the larger the impact it will have on our economy. Though some say that the lost business activity will be made up in time, they are uncertain of the amount of time it will take. Many consumers are holding onto those purse strings until they know for certain things will be settled.
Opinion Section
This article caught my attention because it is covering the government shutdown, which is something we discussed in class. This government shutdown occurred because Congress couldn't agree on a budget. In part due to Obama Care and the ever rising debt ceiling among other reasons . In reading this article I have a better understanding of what was all affected by this government shutdown. I have family in the military so obviously they were affected, active duty personnel have been furloughed until further notice. While certain inessential departments at the Federal center in Battle Creek have