Debbie Wasserman Schultz says federal shutdown is projected to cost the economy $10 billion per week

[applegrove]

Debbie Wasserman Schultz says federal shutdown is projected to cost the economy $10 billion per week

http://www.politifact.com/florida/statements/2013/oct/03/debbie-wasserman-schultz/debbie-wasserman-schultz-says-federal-shutdown-10-/

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Wasserman Schultz’s numbers are the same as those from the White House. A White House spokesman said the $10 billion figure came from an August report from the investment group Goldman Sachs. We also found similar estimates from Moody’s and IHS.

These financial firms agree that the impact depends on how long the shutdown goes on. The impact gets worse the longer a closure lasts.

"A brief shutdown would delay, not cancel, most spending," said the Goldman Sachs report. "In a brief shutdown, it is likely that only federal employee compensation would be lost — most of the other activity would just be delayed and made up later. A longer shutdown ― the longest shutdown on record in late 1995 and early 1996 lasted about three weeks — would affect a greater share of federal activities."

The report includes three scenarios based on a two-day, one-week and three-week shutdown. It predicts a $2.6 billion economic loss for a two-day shutdown, $10.4 billion for a week and $36.8 billion for three weeks.



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