Economic Costs of Washington Dysfunction Weigh Heavily
September 26, 2013
The U.S. Senate is expected to work on an emergency funding bill this weekend to keep the government operating after its spending authority runs out October 1. The bill would still require approval from the Republican-led House of Representatives, which earlier this week agreed to fund the government only if none of the funds are used to implement President Barack Obama’s signature health care law. But even if lawmakers succeed in averting a costly shutdown, some say the U.S. economy already is paying the price for political dysfunction.
It’s down to the wire again as Washington wrestles with another fiscal deadline. But even if lawmakers succeed in defusing the latest crisis, the uncertainty carries a hefty price tag.
One study suggests that since the last budget impasse in 2011 - the market volatility, hiring delays and reduced consumer demand have shaved about $150 billion from the country’s gross domestic output.
Testifying in Congress this week, economist Mark Zandi said that’s equivalent to more than one million jobs. “If political uncertainty had not risen to the degree that it has, the unemployment rate today would still be high, uncomfortably high, but at 6.6 percent [we’re currently at 7.3 percent, it would be 6.6 percent] that would make a meaningful difference to our economy’s performance.”
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2013-11-25
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2013-11-25
2013-11-25