Experts Say Long Shutdown Could Hurt Economy More

United States

Economists say the length of the shutdown matters a lot. In 2013, the shutdown lasted just over two weeks. After it ended, workers got back pay. They then spent more money, which helped the economy recover quickly.

But this shutdown is already longer than the one in 2013. If it continues for many months, the damage could be severe.

There is another concern. In past shutdowns, all workers got back pay. But the law only requires pay for those who worked. Furloughed workers – those sent home – might not get paid. If they do not receive their missing wages, the economic harm could last much longer.

“Households might use up their savings or reach their credit card limits,” said one expert. “The longer this goes on, the worse it gets for everyone.”

About Razia Sultana 3 Articles
Razia Sultana is the International Desk Editor at DhakaNow. She started working here right when the magazine launched in January 2019, as a reporter covering politics, and international affairs.

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