Government Shutdown Will Slow Economic Growth Significantly (Bloomberg)
Moody’s estimates 3 percent economic growth for the United States.in the fourth quarter of 2013… That is, if there is no government shutdown in October. If the White House and Congress cannot come to an agreement on funding the country by Oct. 1, then a government shutdown of two weeks is predicted to cut that growth by .3 percent. A three-to-four-week closure would cut into growth by as much as 1.4 percent, as lost output would weaken gross domestic product. However, the impact could be even worse, as those figures do not include the affect a shutdown would have on consumer or business psychology. Should consumers and businesses decide to withhold spending until the outcome of the shutdown is known, the decline in economic growth could be even worse. And that would certainly put a damper on holiday cheer.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:
Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers: