Thursday, October 17, 2013

The last word on the shutdown

What the shutdown cost:

“The bottom line is the government shutdown has hurt the U.S. economy,” Standard & Poor’s said in a statement. “In September, we expected 3 percent annualized growth in the fourth quarter because we thought politicians would have learned from 2011 and taken steps to avoid things like a government shutdown and the possibility of a sovereign default. Since our forecast didn’t hold, we now have to lower our fourth-quarter growth estimate to closer to 2 percent.”

Moody’s Analytics reported a similar number Wednesday, saying by the end of the day the shutdown will  cause a $23 billion hit to U.S. GDP or $1.4375 billion per day.

-- $3.1 billion in lost government services. Although furloughed workers will get their back pay,  taxpayers won’t see the products.  (Source: I.H.S.)

--  According to the U.S. Travel Association:  There has been $152 million per day in all spending related to travel lost because of the shutdown. As many as 450,000 American workers supported by travel may be affected.

--  According to the National Park Service: They welcome more than 700,000 people per day usually in October and visitors spend an estimated $32 million per day impact in communities near national parks and contribute $76 million each day to the national economy.  Those revenues were lost.

--  According to Destination D.C., the official tourism corporation of D.C.: There is a 9 percent decrease in hotel occupancy from the last week in September before the shutdown to the first week of October during the shutdown. This year, hotel occupancy was down 74.4 percent for the week Sept. 29 to Oct. 5 compared to the 2012 numbers. (Source: Smith Travel Research, Inc.) In 2012, an estimated $6.2 billion of visitor spending supported more than 75,300 jobs.

What the shutdown's lost revenue could have paid for:

The topline figure may not take many other costs into account, such as loans that didn’t go out from the Small Business Administration, permits that got held up, and the loss of billions in tax revenue. Plus the government could still get a downgrade on its credit, which could ding business and consumer confidence and bring about more costs.

The shutdown was just the latest budget crisis that has been costly to the economy. A recent report found that the uncertainty created by fights over funding the government and raising the debt ceiling that have cropped up since 2010 has cost the economy nearly a million jobs

Ted Cruz:

"It was an incredible victory." 

No comments: