Shutdown's Lasting Economic Impact

November 11th marks the end of the longest US government shutdown, leaving a lasting impact on the economy. While most lost activity will recover, permanent losses like canceled flights and missed meals persist. The shutdown exacerbates existing challenges, including sluggish hiring and high inflation. Federal contractors, numbering up to 5.2 million, are not guaranteed back pay. Flight disruptions, caused by overworked controllers, result in a $63 million daily reduction in travel spending. Consumer sentiment plummets to a three-year low, potentially reducing spending and growth. The shutdown also delays $8 billion in monthly food aid for 42 million recipients. Lastly, the lack of economic data could delay a Fed interest rate cut, further discouraging borrowing and spending. DNN | The Daily News Now! The world’s first global local news network. Every city. Every story. AI powered. Hosted on Acast. See acast.com/privacy for more information.