A Potential Shut Down Could Damage an Already Weak Economy
Photo: Video by kmtv.com
The nation's already weak economy can only take so much and if the shut down drags on for weeks, economists fear that it could drive our nation back into a recession.
The longer a shutdown lasts, the more significant the impact is on our economy. The decision hasn't been reached yet, but we are already seeing the impact of a potential shutdown. Things such as the New York Stock Exchange, The Dow and the NASDAQ have already taken huge hits.
There are also shut down and re-opening costs. The two previous shutdowns in the 90’s cost the country $1.4 billion.
But, Creighton Economics Professor Dr. Ernie Goss believes one of the biggest costs will be the uncertainty in the future of our nation's economy.
“The biggest cost is not what it costs in terms of direct payments for the government either spending or receipts, the real cost of course is what it does to consumer confidence, business confidence, our trading partners, our political partners,” said Goss.
Many economists believe that investors outside the US, such as in Canada, Mexico and Europe will look at this situation as pure chaos and be fearful to invest in the US, causing even more long term problems for our already shaky economy.
At 2 pm on Monday House Republicans will meet in the capitol to discuss strategy for the government funding bill that is now in the senate's hands.