A government shutdown can have a wide-ranging impact on various aspects of daily life and the economy. Here are some of the key areas that could be affected by a government shutdown:
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Federal Workers: Hundreds of thousands of federal workers could be sent home without pay, leading to financial strain for many families.
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Small Businesses: The U.S. Small Business Administration (SBA) would not accept, review, or approve any new business loans for small businesses during a shutdown, impacting access to over $800 million in loans for small businesses.
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Federal Loans and Benefits: Federal loans to small businesses, as well as benefits such as WIC and SNAP, could be impacted.
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National Parks and Monuments: During a government shutdown, access to national parks and monuments may be limited, and services such as campgrounds and concession stands may be affected.
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Economic Impact: Shutdowns can carry a cost to the economy, with the Congressional Budget Office estimating that the 2018-2019 shutdown reduced Gross Domestic Product (GDP) by a total of $11 billion, including $3 billion that will never be recovered.
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Disruptions to Services: Shutdowns can lead to delays in processing applications for passports, small business loans, or government benefits, as well as shuttered visitor centers and bathrooms at national parks, and fewer food-safety inspections.
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Travel: While a government shutdown wouldnt necessarily be detrimental to travel plans, air traffic controllers and TSA agents would have to work, potentially causing disruptions in air travel.
Its important to note that essential services continue to function during a shutdown, as do mandatory spending programs. Additionally, a prolonged shutdown can cause bigger problems for the economy, with estimates suggesting that it could reduce GDP growth by about 0.2 percentage point each week it lasts.
