http://money.cnn.com/2013/09/23/news/economy/shutdown-economy/index.html?iid=SF_E_River. Due 30 Sep 2013. Discuss economic costs of an government shutdown....
From the article Zandi estimates that a shutdown that lasts just a few days might cost the economy two-tenths of a percentage point of annualized growth during the fourth quarter. And that's an economic equivalent of a smudge. Most people could agree with Zandi based on all that has being happening in the economic system and the many effects it has on certain things that are based on the economy. Now the last the government was shut down twice for nearly four weeks combined, the CBO estimated those shutdowns shaved only about half a percentage point off growth in the fourth quarter on that year. Since the economy is much more fragile today than in 1995-96 when the economy was on the verge of the tech boom. Zandi assume a greater hit this time for two reasons: the first is timing: the 1995 shutdowns started in the second half of the quarter. This time if congress fails to pass a funding bill, the shutdown will begin on October 1st. Ultimately, it depends on how much of the federal government remains running during the shutdown. The more the shut down remain the worse the effect will be. Some of the affect of the shutdown might be hundreds of thousands of federal workers would be furloughed without pay. Another factor that could affect the economy in a prolonged shutdown is consumer,investor and business psychology. Lastly, it will lead to a debt ceiling, which can raise the risk of U.S default.
This article depicts the future with two scenarios; the digression over one to two days and two to three weeks. Zandi laid out the outcome for both and basically the USA can only afford the one to two days with our economics status if a shutdown were to occur. As stated in the article the economic costs would be the delayed deliverance of certain federal services such as food inspections and air traffic control. The other obvious economic costs would be the unemployment for federal government employees. This will eventually lead to more government assistance agencies dealing with unemployment issues and checks which will cost the government even more debt with the amount filing for it. Another costs is that the timing would interfere with this historical initiation of Obama Care. Overall if this shutdown was going to occur, the government better think twice before allowing it to happen.
From my point of view, an government shutdown would affect us (people) in so many ways. First, taxes would rise so high, just imagine. For this reason, unemployment rate would rise as well. Also, employees would barely get paid. Prices would go up and society would be struggling to make a living and survive. Who knows? They would probably start protesting. Some other economics cost of an government shutdown would be that Social Security and Medicare could be delayed. Contracts would be put on hold until funding is available. Things would just get complicated and just like the article said '' It would be inconvenient and frustrating." Maybe closing down for like a few days wouldn't be so effective but for like a month would slow down fourth-quarter growth.
A government shutdown could have long term effects on our economy. According to the article, it is estimated that the it would "reduce the GPD by 1.4 percentage points for the quarter." Furthermore, the shutdown "increases uncertainty which makes companies less willing to invest." This could have drastic effects in hurting our economy even if it only lasts a few days. If people have less trust in the government, then it could have long term effects far outlasting the length of a governmental shutdown. This could leave hundreds of thousands of people with no pay for days or even weeks which most people can't stand to lose.
An economic shutdown ranging from a few days to a few weeks will cost us more than we expect. Zandi estimated that a shutdown for one to two days will only cost us a smidge, while a shutdown for two to three weeks will be disastrous. Because our economy is so fragile right now, there is no telling what can happen in a moments notice. Companies will not be willing to take chances, and government polices will be uncertain and very risky. Also, the government will have a tough time deciding on what to shut down and what to keep running. If that means not pay hardworking middle-class citizens for weeks on end, then they must be prepared for the repercussions. But in the end, the main concern is that all of this factors into us raising our own risk for defaulting.
A government shutdown would impact the whole economic system in several ways. Such as taxes would go up by a significant amount and by that happening people will struggle even when it comes to jobs. I also believe that the unemployment rate will go up as well making things harder for people to survive and especially support families. That will lead to controversy as well as to protest. If worse comes to worse the protest may come to riots because it is such a dramatic change overall in the system. If the government shutdown was to take into action they should reconsider before making a step that can change our life as we know it today. P.5 Kevin Pestana
This shutdown seem like it will do more harm to our economy, just because we did a shut down in 1995-1996 doesn't mean it would be a good idea because in 1995 we had a strong economy but now our economy right now is rather weak and fragile and the shut down should and just make everything worse, Another thing that will happen if we shut down the economy is that Federal Government workers will be working with no pay which it will affect many families, and if we do this shut down this will also effect the Federal funding like social security that would delayed. In all the shut down doesn't seem like it will solve our problems at all but cause more problems and headaches
In 1995, the shut down happened during halfway through the quarter. If the gov't plans to do a shut down, it'll be on October 1st, which is the start of a new quarter. A shut down for couple of days in 95 won't be as bad compared to what the gov't is dealing with right now. Our economy is more fragile than it was a decade ago. If we have an economic shut down for nearly a week, unemployment rate will rise. Companies will be hesitant to buy new plants and hire people. The GDP will decrease by 1.4% which means our supply will go down, which means our prices will go up. The pay for companies will be delayed because of the shut down. The federal gov't can't predict whether or not they will be stable during this shut down.
If the government shuts down this year it will be at the start of a new quarter, which is extremely dangerous. Zandi says our economy is so fragile, the shutdown in 1995 wasn't as bad as what would happen if we had one now. Taxes would go up the roof, unemployment rates would be higher than ever. Companies won't be producing and won't be hiring. I feel as though having a shutdown in the economy will effect us worse than the debt we are in. Many people won't be able to live without getting paid which would most likely cause riots.
Government shutdowns will affect the economy no matter for how long it lasts. Whether for 2 days or 2 weeks, the economy will be affected. Zandi states that our economy is even more fragile than it was back in 1995. If there is an economic shutdown, the economy will restart on October 1 and begin a new quarter. A government shutdown will cause Hundreds of federal workers to be lay off without pay. But the social security checks will not be affected. Overall, the White House will determine what needs to be shut down and what needs to be continued during a shutdown. Even when the government is "shut" they still manage to have control over society.
A government shut down for any amount of days is going to lose lots of money for the US & hurt the families of the workers of the federal government. A shut down in the beginning of the fourth quarter is going to hurt us a lot more than in 1995 and even after the shut down we will be left in a economy full of uncertainty. Our country is in a fragile state right now and is breaking down.
The economic costs of a government shutdown vary with the amount of time the shutdown lasts. If it lasts for a few days, the cost would be fairly small. But the longer it runs the more it costs us. With previous shutdowns, our growth was only affected by half a percentage point. But due to the current state of the economy, a shutdown now would cause companies to be more cautious in what they invest in and less willing to hire. Also, the mindsets of consumers, investors, and businesses may change, which would also affect the economy. Many people would lose jobs and we would most likely end up with an economy that is worse off than it is now, and with problems that would take us longer to solve.
According to the article, the extent of damage a government shutdown would cause depends on long it is extended. If it is only for a few days, then it will only be a tiny scratch. Anything longer and you are playing with fire. If the government workers aren't receiving money, then they will start to cut back and stop spending as much money. This will cause a domino effect that will eventually lead to an deflation of prices around the country. A deflation will only delay the country's recovery. There will be even less jobs available and some of those jobs may never come back.
As shown in the article, Zandi proclaims that an economic shutdown will only affect our economy slightly for at least 2 days but with two or three weeks it will lead to a tremendous downfall. The United States can only manage an economic shutdown within the range of 1-2 days. This type of shutdown will affect us more than ever because it will also add to the debt we already have, and unemployment will be much higher which only causes more problems for the government. Additionally, taxes would rise too . Federal government workers could also be working without any pay and companies would have to make uncertain/risky decisions on what to keep running or what to stop running. All of these factors are key components to an economy's downfall which should be carefully analyzed and thought out by the government before any type of shutdown takes place.
A shutdown in the economy will not end well, whether its for a short period of time or a long period of time. In the article it states that "our the economy is much more fragile today than in 1995-96 when the economy was on the verge of the tech boom." It will cause serious neagtive effects. The economic costs of an government shutdown is going through with it and dealing with these effects or not shutting down the government. Hundreds of thousands of federal workers would be working without pay, which will end up with a lot of angry federal workers. And thats just one of many problems that would occur if the government shutdown.
According to the article, the extent of damage a government shutdown would cause depends on long it is last. If it is only for a few days, it will not have much effect on the economy, but a shutdown for two to three weeks will be very damaging. Unlike the 1995, our economy is much weaker than it was then. The economy might not be able to bounce back from an extended shutdown and it will effect the lives of everyone as a whole which can lead to devastating consequences.
A government shutdown today will be nothing compared to the one in 1995-1996. Our economy is much more fragile today than it was 18 years ago. Zandi was estimating the ways the shutdown will affect us,for a day or two. Compared to a few weeks, we have know idea what to expect. Companies will stop production, release employees, and not hire anyone. Many federal workers will go without pay. The negative affects of a shutdown will be unwinding out of control
According to the article, if the economy has another shut down the damage would affect the government ant he workers. The economy shutting down for any amount if time would cause lost of money and that would lead to cutting down pay checks and less money for the workers, which mean the workers would have a hard time supporting their families. A shut down at the beginning would hurt the economy way more then in 1995, its very hard to get back to where you were, then losing it. It would take a lot more to get to just where we were in the first place.
Well, according to the article, if the shutdown only lasts a few days, it wont be horrible. As time goes by, the damage the shutdown will cause will grow exponentially. Since the most recent data we have of a shutdown happened over a decade and a half ago, when the economy was in a completely different state, there is no way to accurately tell what it will do this time. All we can do is guess. With so many people out of work, and others who just don't understand what a shutdown means, this will probably result in hundreds of thousands of people losing the little trust they had left in the government.
According to the article, if we have another shutdown and lasted two weeks or more, it will damage the economy. If Congress fails to pass a funding bill, the shutdown will begin October 1st which is the beginning of a new quarter. Back then, like in 1995 the shutdown in history did not cause that much damage. However, in this time today if we have a shutdown it will cause a lot of damage and it won't be good for our economies. One of the negative effect if we have a shutdown is that it increases uncertainty which makes companies less willing to invest in new plants, equipment and hiring. And I think it will be hard for us to get where we are now if we have a shutdown.
A government shutdown no matter how long it may last will affect our economy. the economy is much more fragile today than in the past shutdown. a shutdown would have negative effects on the economy because companies that need to develop and invest for proper development would not be able too, and would force feds to continue with experimental policies which are uncertain. furthermore most of the government would be damaged and the money that the agencies would spend would be delayed and many federal workers would be without pay.
a government shutdown will affect our economy greatly no matter the circumstance. The economy is very unstable today; it is easy to go up or down. A shutdown in government may result in negative effect for companies that are developing and making investments to expand there businesses. the government will also become hurt and cause cycle of money to be staggered and disrupted greatly because of the shutdown.
If the federal government shutdown, our economy would be crashed. I don't think we would ever be able to repair it again. A lot of the programs that depend on the federal funds will also shutdown because they wouldn't be able to function. A lot of citizens would lose their jobs and houses; they would no longer be able to feed their families. Companies that are starting and other major companies would also be affected because if people are not working they can't generate money to anything. Poverty will increase and unemployment rates would be so high. The nation would suffer and lose its respect. We would be no longer regarded as the powerful nation that it is perceived as.
With the shutdown it seems that it won't do anything but harm our economy. With the economy may or may not crash, it's unlikely that we'll be able to fix it again. People are going to lose their jobs and businesses if the economy drops. citizens could lose their homes. the cycle of money is going to cause for the government to be hurt because of the shutdown.
A government shutdown could have long term effects on our economy. According to the article, it is estimated that the it would reduce the GPD by 1.4 percentage points for the quarter. Increasing uncertainty which makes companies less willing to invest. This could have many downfalls in terms of our economy even if it were to only last a couple of days. The less we trust government, the worst off we will be.
This article depicts the future with two scenarios; the digression over one to two days and two to three weeks. A shutdown would have negative effects on the economy because companies that need to develop and invest for proper development would not be able too, and would force feds to continue with experimental policies which are uncertain. The nation would suffer and lose its respect. We would be no longer regarded as the powerful nation that it is perceived as. The economy might not be able to bounce back from an extended shutdown and it will effect the lives of everyone as a whole which can lead to devastating consequences.
From the article Zandi estimates that a shutdown that lasts just a few days might cost the economy two-tenths of a percentage point of annualized growth during the fourth quarter. And that's an economic equivalent of a smudge. Most people could agree with Zandi based on all that has being happening in the economic system and the many effects it has on certain things that are based on the economy. Now the last the government was shut down twice for nearly four weeks combined, the CBO estimated those shutdowns shaved only about half a percentage point off growth in the fourth quarter on that year. Since the economy is much more fragile today than in 1995-96 when the economy was on the verge of the tech boom. Zandi assume a greater hit this time for two reasons: the first is timing: the 1995 shutdowns started in the second half of the quarter. This time if congress fails to pass a funding bill, the shutdown will begin on October 1st. Ultimately, it depends on how much of the federal government remains running during the shutdown. The more the shut down remain the worse the effect will be. Some of the affect of the shutdown might be hundreds of thousands of federal workers would be furloughed without pay. Another factor that could affect the economy in a prolonged shutdown is consumer,investor and business psychology. Lastly, it will lead to a debt ceiling, which can raise the risk of U.S default.
ReplyDeleteThis article depicts the future with two scenarios; the digression over one to two days and two to three weeks. Zandi laid out the outcome for both and basically the USA can only afford the one to two days with our economics status if a shutdown were to occur. As stated in the article the economic costs would be the delayed deliverance of certain federal services such as food inspections and air traffic control. The other obvious economic costs would be the unemployment for federal government employees. This will eventually lead to more government assistance agencies dealing with unemployment issues and checks which will cost the government even more debt with the amount filing for it. Another costs is that the timing would interfere with this historical initiation of Obama Care. Overall if this shutdown was going to occur, the government better think twice before allowing it to happen.
ReplyDeleteFrom my point of view, an government shutdown would affect us (people) in so many ways. First, taxes would rise so high, just imagine. For this reason, unemployment rate would rise as well. Also, employees would barely get paid. Prices would go up and society would be struggling to make a living and survive. Who knows? They would probably start protesting. Some other economics cost of an government shutdown would be that Social Security and Medicare could be delayed. Contracts would be put on hold until funding is available. Things would just get complicated and just like the article said '' It would be inconvenient and frustrating." Maybe closing down for like a few days wouldn't be so effective but for like a month would slow down fourth-quarter growth.
ReplyDeleteA government shutdown could have long term effects on our economy. According to the article, it is estimated that the it would "reduce the GPD by 1.4 percentage points for the quarter." Furthermore, the shutdown "increases uncertainty which makes companies less willing to invest." This could have drastic effects in hurting our economy even if it only lasts a few days. If people have less trust in the government, then it could have long term effects far outlasting the length of a governmental shutdown. This could leave hundreds of thousands of people with no pay for days or even weeks which most people can't stand to lose.
ReplyDeleteAn economic shutdown ranging from a few days to a few weeks will cost us more than we expect. Zandi estimated that a shutdown for one to two days will only cost us a smidge, while a shutdown for two to three weeks will be disastrous. Because our economy is so fragile right now, there is no telling what can happen in a moments notice. Companies will not be willing to take chances, and government polices will be uncertain and very risky. Also, the government will have a tough time deciding on what to shut down and what to keep running. If that means not pay hardworking middle-class citizens for weeks on end, then they must be prepared for the repercussions. But in the end, the main concern is that all of this factors into us raising our own risk for defaulting.
ReplyDeleteA government shutdown would impact the whole economic system in several ways. Such as taxes would go up by a significant amount and by that happening people will struggle even when it comes to jobs. I also believe that the unemployment rate will go up as well making things harder for people to survive and especially support families. That will lead to controversy as well as to protest. If worse comes to worse the protest may come to riots because it is such a dramatic change overall in the system. If the government shutdown was to take into action they should reconsider before making a step that can change our life as we know it today.
ReplyDeleteP.5 Kevin Pestana
This shutdown seem like it will do more harm to our economy, just because we did a shut down in 1995-1996 doesn't mean it would be a good idea because in 1995 we had a strong economy but now our economy right now is rather weak and fragile and the shut down should and just make everything worse, Another thing that will happen if we shut down the economy is that Federal Government workers will be working with no pay which it will affect many families, and if we do this shut down this will also effect the Federal funding like social security that would delayed. In all the shut down doesn't seem like it will solve our problems at all but cause more problems and headaches
ReplyDeleteIn 1995, the shut down happened during halfway through the quarter. If the gov't plans to do a shut down, it'll be on October 1st, which is the start of a new quarter. A shut down for couple of days in 95 won't be as bad compared to what the gov't is dealing with right now. Our economy is more fragile than it was a decade ago. If we have an economic shut down for nearly a week, unemployment rate will rise. Companies will be hesitant to buy new plants and hire people. The GDP will decrease by 1.4% which means our supply will go down, which means our prices will go up. The pay for companies will be delayed because of the shut down. The federal gov't can't predict whether or not they will be stable during this shut down.
ReplyDeleteIf the government shuts down this year it will be at the start of a new quarter, which is extremely dangerous. Zandi says our economy is so fragile, the shutdown in 1995 wasn't as bad as what would happen if we had one now. Taxes would go up the roof, unemployment rates would be higher than ever. Companies won't be producing and won't be hiring. I feel as though having a shutdown in the economy will effect us worse than the debt we are in. Many people won't be able to live without getting paid which would most likely cause riots.
ReplyDeleteGovernment shutdowns will affect the economy no matter for how long it lasts. Whether for 2 days or 2 weeks, the economy will be affected. Zandi states that our economy is even more fragile than it was back in 1995. If there is an economic shutdown, the economy will restart on October 1 and begin a new quarter. A government shutdown will cause Hundreds of federal workers to be lay off without pay. But the social security checks will not be affected. Overall, the White House will determine what needs to be shut down and what needs to be continued during a shutdown. Even when the government is "shut" they still manage to have control over society.
ReplyDeleteA government shut down for any amount of days is going to lose lots of money for the US & hurt the families of the workers of the federal government. A shut down in the beginning of the fourth quarter is going to hurt us a lot more than in 1995 and even after the shut down we will be left in a economy full of uncertainty. Our country is in a fragile state right now and is breaking down.
ReplyDeleteThe economic costs of a government shutdown vary with the amount of time the shutdown lasts. If it lasts for a few days, the cost would be fairly small. But the longer it runs the more it costs us. With previous shutdowns, our growth was only affected by half a percentage point. But due to the current state of the economy, a shutdown now would cause companies to be more cautious in what they invest in and less willing to hire. Also, the mindsets of consumers, investors, and businesses may change, which would also affect the economy. Many people would lose jobs and we would most likely end up with an economy that is worse off than it is now, and with problems that would take us longer to solve.
ReplyDeleteAccording to the article, the extent of damage a government shutdown would cause depends on long it is extended. If it is only for a few days, then it will only be a tiny scratch. Anything longer and you are playing with fire. If the government workers aren't receiving money, then they will start to cut back and stop spending as much money. This will cause a domino effect that will eventually lead to an deflation of prices around the country. A deflation will only delay the country's recovery. There will be even less jobs available and some of those jobs may never come back.
ReplyDeleteAs shown in the article, Zandi proclaims that an economic shutdown will only affect our economy slightly for at least 2 days but with two or three weeks it will lead to a tremendous downfall. The United States can only manage an economic shutdown within the range of 1-2 days. This type of shutdown will affect us more than ever because it will also add to the debt we already have, and unemployment will be much higher which only causes more problems for the government. Additionally, taxes would rise too . Federal government workers could also be working without any pay and companies would have to make uncertain/risky decisions on what to keep running or what to stop running. All of these factors are key components to an economy's downfall which should be carefully analyzed and thought out by the government before any type of shutdown takes place.
ReplyDeleteA shutdown in the economy will not end well, whether its for a short period of time or a long period of time. In the article it states that "our the economy is much more fragile today than in 1995-96 when the economy was on the verge of the tech boom." It will cause serious neagtive effects. The economic costs of an government shutdown is going through with it and dealing with these effects or not shutting down the government. Hundreds of thousands of federal workers would be working without pay, which will end up with a lot of angry federal workers. And thats just one of many problems that would occur if the government shutdown.
ReplyDeleteAccording to the article, the extent of damage a government shutdown would cause depends on long it is last. If it is only for a few days, it will not have much effect on the economy, but a shutdown for two to three weeks will be very damaging. Unlike the 1995, our economy is much weaker than it was then. The economy might not be able to bounce back from an extended shutdown and it will effect the lives of everyone as a whole which can lead to devastating consequences.
ReplyDeleteA government shutdown today will be nothing compared to the one in 1995-1996. Our economy is much more fragile today than it was 18 years ago. Zandi was estimating the ways the shutdown will affect us,for a day or two. Compared to a few weeks, we have know idea what to expect. Companies will stop production, release employees, and not hire anyone. Many federal workers will go without pay. The negative affects of a shutdown will be unwinding out of control
ReplyDeleteAccording to the article, if the economy has another shut down the damage would affect the government ant he workers. The economy shutting down for any amount if time would cause lost of money and that would lead to cutting down pay checks and less money for the workers, which mean the workers would have a hard time supporting their families. A shut down at the beginning would hurt the economy way more then in 1995, its very hard to get back to where you were, then losing it. It would take a lot more to get to just where we were in the first place.
ReplyDeleteWell, according to the article, if the shutdown only lasts a few days, it wont be horrible. As time goes by, the damage the shutdown will cause will grow exponentially. Since the most recent data we have of a shutdown happened over a decade and a half ago, when the economy was in a completely different state, there is no way to accurately tell what it will do this time. All we can do is guess. With so many people out of work, and others who just don't understand what a shutdown means, this will probably result in hundreds of thousands of people losing the little trust they had left in the government.
ReplyDeleteAccording to the article, if we have another shutdown and lasted two weeks or more, it will damage the economy. If Congress fails to pass a funding bill, the shutdown will begin October 1st which is the beginning of a new quarter. Back then, like in 1995 the shutdown in history did not cause that much damage. However, in this time today if we have a shutdown it will cause a lot of damage and it won't be good for our economies. One of the negative effect if we have a shutdown is that it increases uncertainty which makes companies less willing to invest in new plants, equipment and hiring. And I think it will be hard for us to get where we are now if we have a shutdown.
ReplyDeleteA government shutdown no matter how long it may last will affect our economy. the economy is much more fragile today than in the past shutdown. a shutdown would have negative effects on the economy because companies that need to develop and invest for proper development would not be able too, and would force feds to continue with experimental policies which are uncertain. furthermore most of the government would be damaged and the money that the agencies would spend would be delayed and many federal workers would be without pay.
ReplyDeletea government shutdown will affect our economy greatly no matter the circumstance. The economy is very unstable today; it is easy to go up or down. A shutdown in government may result in negative effect for companies that are developing and making investments to expand there businesses. the government will also become hurt and cause cycle of money to be staggered and disrupted greatly because of the shutdown.
ReplyDeleteIf the federal government shutdown, our economy would be crashed. I don't think we would ever be able to repair it again. A lot of the programs that depend on the federal funds will also shutdown because they wouldn't be able to function. A lot of citizens would lose their jobs and houses; they would no longer be able to feed their families. Companies that are starting and other major companies would also be affected because if people are not working they can't generate money to anything. Poverty will increase and unemployment rates would be so high. The nation would suffer and lose its respect. We would be no longer regarded as the powerful nation that it is perceived as.
ReplyDeleteWith the shutdown it seems that it won't do anything but harm our economy. With the economy may or may not crash, it's unlikely that we'll be able to fix it again. People are going to lose their jobs and businesses if the economy drops. citizens could lose their homes. the cycle of money is going to cause for the government to be hurt because of the shutdown.
ReplyDeleteA government shutdown could have long term effects on our economy. According to the article, it is estimated that the it would reduce the GPD by 1.4 percentage points for the quarter. Increasing uncertainty which makes companies less willing to invest. This could have many downfalls in terms of our economy even if it were to only last a couple of days. The less we trust government, the worst off we will be.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThis article depicts the future with two scenarios; the digression over one to two days and two to three weeks. A shutdown would have negative effects on the economy because companies that need to develop and invest for proper development would not be able too, and would force feds to continue with experimental policies which are uncertain. The nation would suffer and lose its respect. We would be no longer regarded as the powerful nation that it is perceived as. The economy might not be able to bounce back from an extended shutdown and it will effect the lives of everyone as a whole which can lead to devastating consequences.
ReplyDelete