The Cost of Inaction: The Economic Toll of the Government Shutdown

Weeks have gone by since the start of the government shutdown. The increasingly polarized parties in our country are at a standstill, with neither side willing to back down. The shutdown occurred due to a stalemate between the Republican and Democratic parties over a federal budget bill, in which Democrats are fighting for increased spending on issues such as reversing cuts to government health agencies and undoing Trump’s Medicaid cuts.1 The shutdown has halted government spending on “nonessential” acts, resulting in numerous government workers without steady wages. Till and Hernandez of the Bipartisan Policy Center state that approximately 670,000 federal employees were furloughed, and 730,000 continue to work without pay.2 These workers rely on their weekly paychecks to put food on the table, and leaving them without money, especially for such an extended period of time, is a huge burden placed upon them. In Washington, D.C, federal workers are now resorting to food banks to keep their stomachs filled. For example, the Capital Area Food Bank saw 250 federal employees come in for meals, a sight unseen to countless federal employees, such as Anthony Speight, who NBC News interviewed.3 He commented on the irony from being a grants administrator, to now requiring the very same. Similarly, in Prince George’s County, Md., the turnout for a food-box drive exceeded the planned 150, and reinforcements had to be called in to provide more resources.4 Federal workers who were living comfortable lives are now relying on nonprofit-supplied aid to sustain basic living qualities. The reason so many government workers aren’t financially ready for weeks without pay is their low salaries. The national average salary needed for a single adult to live comfortably is $102,648, with some states exceeding $120,000.

For a family of four, that figure skyrockets, with some states exceeding $275,000.5 However, nearly half of U.S. federal workers make less than what a single adult needs to live comfortably.6 Supporting a family on such an income is already challenging, and prolonged periods without pay make it even more difficult. The government shutdown is not just an inconvenience but an unnecessary puni s h m e nt inflicted on those who keep the country running. However, the damage doesn’t stop there. Every day the shutdown continues, the economy is dragged down, choking productivity and government spending for all American citizens, in turn hurting the very taxpayers Washington says it protects. GDP, or Gross Domestic Product, is the total annual output of all products and services a country produces. Government spending accounts for around 20% of GDP when calculated, and even a slight dip can reduce GDP by billions of dollars.7 Due to this shutdown and how the government has stopped spending, each week of the shutdown reduces the economy’s expected annual growth by 0.1%, accounting for $30 billion in lost economic growth over the year.8 Due to the decrease in economic output from pause in certain sectors, businesses lose profit and are forced to cut back on wages and job opportunities affecting the GDP. Layoffs typically systemically follow, reducing household income and their ability to afford the goods and services they once did. This creates a cycle in which declining consumer spending further reduces company revenue and triggers additional job losses.9 The total economic productivity of the nation starts to decline, worsening the financial state and quality of life of the average American. These effects will not be sudden or drastic, but will gradually increase as the government shutdown continues. Additionally, a worsening economy reduces government tax revenue, taking away money from government causes that would have been addressed post-shutdown.10 For example, funding toward government infrastructure and public health initiatives can all be reduced, putting millions of ordinary Americans at risk.11 In the end, American citizens are suffering the brunt of this government shutdown.

The childish impasse between the two parties is taking a toll on the average American, which lawmakers seem not to understand. The power-hungry, bipartisan nature of our country is only furthering a national divide and taking away the nation’s responsibility to serve its people. Has our current government swayed away from what our founding fathers hoped it to be? “The current Federal government shutdown is now the second longest in US history. Democrats and Republicans remain steadfast in their positions.”