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Economic Costs of Government Shutdowns

Government shutdowns can cause economic costs, including erosion of public trust, operational stress on agencies, and potential fiscal costs.

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Jan 27, 2026
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What are the short-term and long-term effects of a government shutdown on the US GDP?

A government imposes a measurable near-term drag on GDP—analyses from the , private forecasters and consultancies converge on the point that shutdowns shave percentage points off quarterly growth but ...