According to the New York Times, a partial stop with this shutdown costs the economy productive work time; historical evidence suggests, along with revenue that the federal government collects from daily fees at parks and museums that private-sector companies that contract with the government have their work temporarily disrupted, and travel spending is reduced, affecting local economies.
1. What cost does the government incur when it is late in paying contractors?
2. What are some of the non-monetary costs of the shutdown?
3. After reading this article, what surprised you the most about the costs of a government shutdown?
Cohen, P. and J. Tankersley. (2018). The Longer It Lasts, the More a Shutdown Could Hurt the Economy.The New York Times, Jan. 20 (Retrievable online at https://www.nytimes.com/2018/01/20/us/politics/economy-government-shutdown.html)