The economic impact unprecedented in the longest shutdown in american history

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The current partial shutdown of the u.s. government is the longer of the paralysis of the administration in the history of the United States and gripe every day a little more expansion of the world’s largest economy.

  • READ ALSO: To Trump, the “shutdown” history could be set to 15 minutes

Most of the administrative bottlenecks in the past –there have been 21 “shutdowns” since 1976– have been too short to have an impact on growth. It is more difficult to say what it will be this time, where the stop extends past three weeks.

“As and to the extent that blocking is part of the time, the suffering is increasing,” said to the AFP Beth Ann Bovino, chief economist at S & P Global Ratings.

With about a quarter of the workforce of federal employees affected –that is, about 800,000 employees–, the partial closure of the administration costs 1.2 billion dollars per week to the economy, according to Ms. Bovino.

If it continues another two weeks, the “shutdown” will cost less in the United States that the wall of 5.7 billion dollars for Donald Trump and that the democrats refuse him.

Without a wall, Mr. Trump refuses to sign the budget to fund the federal government. The impasse seems to be, for the hour total.

Even if the shutdowns of 1995 and 2013 have shown that the economy could quickly rebound once the business picks up, the paralysis of the federal government has a negative effect on a myriad of aspects that go far beyond the salary of public servants.

To the extent that these affect their normal pay retroactively.

Myriad of effects dominos

In the meantime, the farmers put in difficulty by the trade war the president do not affect the aid promised to the poorest families may find themselves without food assistance from the end of February, the inspections stop…

This also means that the aid subsidized for the purchase of seeds and food for animals are not provided to farmers who begin, however, their seedlings.

The member of the stock exchange, the SEC, has ceased to deal with the formalities of ipos, while operating oil and gas are delayed.

Workers under contract with the government, of which a good number will simply not be paid, will lose $ 200 million per day, according to an estimate by Bloomberg News.

Restaurants empty

Tourism is also affected, then it was normally $ 18 million per day in 400 national parks. But with some of the parks without supervision, and many disrupted services, restaurants, hotels and local shops lose customers.

With regard to the federal assistance food for the poorest Americans, its budget is exhausted at the end of February.

The central Bank has asked banks to provide evidence of understanding and the ministry of Housing has begged the owners not to evict tenants, the poorest and the rent is subsidized by the federal government.

For the approximately 380,000 federal workers pushed to unemployment and forced the 420.000 others whose work is deemed “critical” to the functioning of the State and therefore work without being paid, the impact is not negligible.

According to the real estate company Zillow, these workers are owed a total of approximately $ 438 million dollars per month in rent and mortgage payments.

The coast guard published –and quickly removed– a list of things to do to “manage your finances during a shutdown.” They advised the security guards or to organize a yard sale to help offset the loss of the balance.

In some districts of the capital Washington, which is home to approximately 20% of the labor federation, the restaurants are empty, the taxis inactive and the traffic moves with the greatest of ease.

Yingrui Huang, an engineer for a subcontractor of the defence at Goddard Space Flight Center of NASA in Maryland, told AFP that his company, which built normally the weather satellites and telescopes to the government, remains closed until further notice.

In the meantime his office reopens, this engineer now brings to the platform car booking with driver Lyft.

But he said he was more concerned for his colleagues, paid by the hour as janitors, employees of the cafeteria and secretaries. “Their salaries are significantly lower than those of most engineers. They are not in the spotlight and you don’t think about them”.

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