After the Senate and House both agreed on a deal that worked for both sides, President Obama put his pen to the paper and the government was reopen. Despite the end of the shutdown, the cost was damaging.
The government shutdown lasted 16 days and the stalemate in Congress did not go unpunished. According to the financial service company Standard & Poor’s., the shutdown cost the economy $24 billion, or $1.5 billion a day. In addition, it also reduced the projected GDP growth for the upcoming fourth quarter by .6 percent. The revised GDP for the last quarter of 2013 is now 3 percent, down from the previously projected 2.4 percent.
The S&P notes that the shutdown hurt the economy in many different areas.
- About $3.1 billion in lost government services, according to the research firm IHS
- $152 million per day in lost travel spending, according to the U.S. Travel Association
- $76 million per day lost because of National Parks being shut down, according to the National Park Service
- $217 million per day in lost federal and contractor wages in the Washington D.C. metropolitan area alone
Congress took the deal down to the wire and nearly defaulted on their obligations to borrow money and pay their bills. Time magazine points out in the research done by the S&P, if the government did default it would have been "more disastrous than the collapse of Lehman Brothers in 2008, forcing the economy back into a recession."
The agreed upon deal was merely another band-aide on an economic solution that has no consistency or backbone. The deal keeps the government open until January 15th and the debt ceiling raised until February 7TH when the government is likely going to be going through another battle at that time.