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Friday, October 28, 2016

As the 16-day-old government shutdown draws to a close, its true costs are coming into clearer focus.

According to Standard & Poor’s, the shutdown has taken roughly $24 billion out of the U.S. economy, and cut 0.6 percent off of yearly fourth quarter GDP growth.

“The bottom line is the government shutdown has hurt the U.S. economy,” S&P said in a statement. “In September, we expected 3 percent annualized growth in the fourth quarter because we thought politicians would have learned from 2011 and taken steps to avoid things like a government shutdown and the possibility of a sovereign default. Since our forecast didn’t hold, we now have to lower our fourth-quarter growth estimate to closer to 2 percent.”

The ratings agency also stressed that a short-term solution won’t solve the nation’s economic woes.

“The short turnaround for politicians to negotiate some sort of lasting deal will likely weigh on consumer confidence, especially among government workers that were furloughed,” S&P said. “If people are afraid that the government policy brinkmanship will resurface again, and with it the risk of another shutdown or worse, they’ll remain afraid to open up their checkbooks.”

S&P’s findings dovetail neatly with a recent study from private forecasting firm Macroeconomic Advisers, which found that the House of Representatives’ crisis-to-crisis governing style has cost the economy about 900,000 jobs since late 2009.
HuffPo Jobs Chart

Keep all of this in mind the next time a Republican runs for Congress on a platform of “fiscal responsibility.”

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Copyright 2013 The National Memo
  • charleo1

    As it turns out, “these stop the spending now,” ignoramuses weren’t calling for
    budget cuts at all. They meant stop the spending, but throwing taxpayer money
    down the drain, for no good reason at all. That’s okay!

  • Dominick Vila

    The statements made by Sen. Cruz, after the GOP manage to reduce the FY14 budget proposal submitted by President Obama from $1.3T down to $980B, suggest that they are not yet satisfied and that they plan to achieve their balanced budget goal on the backs of seniors, students, the middle class and the poor. Cruz and some of his cronies were unambiguous when they said yesterday that they were planning to cut entitlements (Social Security and MEDICARE) to balance the budget.
    Needless to say, changing our tax rates to Clinton era levels is never mentioned, ending all the loopholes that benefit the wealthy, and unnecessary subsidies is not even a topic of conversation. Everything is centered on destroying what Reagan referred to as “the safety net”. November 2014 could not get here fast enough.

    • paulyz

      I believe it was President Obama that took $716 BILLION from Medicare!

      • RobertCHastings

        And if you look upon that as increased spending or a submarine tax, or some way to debilitate Medicare, you are grossly in error. This was a savings that will strengthen Medicare.

      • Dominick Vila

        I am on SS and MEDICARE and, I assure you, my benefits were not impacted by the $716B in savings realized as a result of greater scrutiny into MEDICARE claims submitted by service providers and/or insurance companies, and greater efficiency. Eliminating waste, fraud, and abuse is not the same as cutting the budget of a department or agency. In fact, the MEDICARE benefits that most seniors receive have improved since President Obama was elected in 2009, and will continue to improve when the “doughnut hole” is eliminated in January 2014.
        I realize that after years of clamoring for entitlement spending reductions, Mitt Romney and the GOP did not hesitate to cynically use the MEDICARE savings as a wedge issue to get the senior vote, it didn’t quite work out as they wished. Many of us are not yet suffering from Alzheimer’s.

        • yeehaw

          @Dominick….Thank you for responding to Paulyz with facts and real life evidence. These people are accustom to the Rush Limbaugh and Fox Opinion crowd, where facts and reason aren’t high on their list of priorities. As long as it’s Anti-Obama, Anti-Government, just say or write it and it must be true!!!

          • Dominick Vila

            The only thing we have to do is to take a look at the images of people demonstrating in front of the White House, waving confederate flags, to understand what drives many of the Tea Party supporters willing to damage our recovering economy, and destroy our international credibility, to achieve their narrow goals. I think it is also important to recognize that while Barack Obama is a lightning rod for them, they also oppose to concept of government and are determined to impose their views and values on everyone else even when they are only a small segment of our population incapable of garnering enough votes to advance their agenda via legitimate, democratic, means.

          • yeehaw

            @dominickvila:disqus….Great point, another observation at that particular event was I bet many of them are eating at the same trough that they accuse and demonize others of doing. I’m almost one hundred percent sure that if you threaten to take away their entitlements you’ll be labeled Anti-American and some other choice expletives!!

      • hilandar1000

        Pauly, Please pay attention. The $716 B figure has been exploited by the GOP as a reduction in benefits which it it NOT. It is a SAVINGS. We, who are on medicare have felt the BENEFITS of that savings as ADDED BENEFITS. Nothing was taken from Medicare. Have you heard even one medicare recipient complaining about his or her personal benefits being cut? I am in that age group and have many friends in that age group, and I have not heard even one word of complaint about any cuts in medicare benefits. In fact, many of us have been surprised to find that the cost of MANY prescription drugs have decreased to a great extent. Many of us have found that it is no longer necessary for us to order our prescription drugs from Canada as we had been doing in prior years. It is disheartening to encounter people who are clinging to old falsehoods when they have been PROVEN to be wrong.

  • JDavidS

    The Tea Clowns just cost the country $24 billion in only 16 DAYS. Imagine what these idiots could do if they were given a 4 YEAR mandate…Just the thought should leave any thinking person frightened.

    • RobertCHastings

      Obama was given a “mandate”, but the Republicans don’t seem to understand that. When you win the popular vote by 3.5 million votes, the electoral vote by about 100, pick up seats in the Senate and cut in half the spread in the House, that is the closest thing to mandate we have seen in perhaps two generations. And it SHOULD alert the opposition party to work with the president and his allies in forwarding an agenda that enhances the middle class.

      • yeehaw

        @Robert..The word mandate is too complicated for the Tea Party to understand. Words like you got a beat-down, now go behave yourselves would be better understood!!!

        • RobertCHastings

          The “beat -down” I can see. But, “behave yourselves”? Really, now. Like that’s going to happen. They can hardly wait for the next round, and the next ass-kicking.

          • yeehaw

            @Robert.. Years ago when Bill Cosby was doing a comedy act about his childhood, he shared how when he and his other siblings were acting up that his father would come into their bedroom to try and reason with them about the consequences of their action. The reply his father got was, “Dear sir, unless we get a good whopping it’s going to be difficult falling asleep!” This is the Republicans Mantra,” Unless we get a good whopping, we won’t be able to rest comfortably!”

          • RobertCHastings

            They have been begging for it for the past five years,and our President finally gave it to them.

  • paulyz

    Worried about $24 Billion but not about 17 Trillion in debt, & now increasing even more?

    • dpaano

      Paulyz: Are you aware that the national debt has actually decreased significantly since President Obama came into office? Maybe you need to spend your time researching things before you continue to believe the right-wing drivel that you’re obviously being fed!

    • disqus_fsqeoY3FsG

      Your party is suppose to be the fiscally responsible party – lets look at your fiscally irresponsible actions.

      1. 40 plus votes to repeal Affordable Care Act that they knew was nothing more than kabuki theater for their constituents cost us an estimated 59.6 mil.
      2. Than this shut down which costs $24 Billion, but let’s not forget because of our inability to govern interest rates on the money we borrowed have gone up and that also adds to our debt.
      3. Now look at the idiot you have offering up budget figures, which somehow never seem to add up correctly. He voted not to raising the debt ceiling which would have brought us untold economic disaster.
      You act like President Obama racked up the 17 Trillion, how about 8 years of Republicans in the drivers seat – 2 unpaid tax cuts, 2 unpaid wars, the Medicare Part D was not paid for, bail out for the banks.

    • Independent1

      In addition to the info that dpaano and Y3FsG have provided you which both point out the absolutely false notion that the GOP is even remotely CONSERVATIVE when it comes to governance, (given that every GOP president since Nixon in his second term as governed with absolute drunken sailor spending, you might be interested to know that despite America’s near 17 trillion in debt, that America in fact has the lowest DEBT TO GDP RATIO of any industrialized nation ON THE PLANET!! YUP!!

      The CBO announced a week or so ago that America’s debt-to-GDP ratio was 73% – Well – NO OTHER indusrialized nation similar to America on the planet has a Debt-to-GDP ratio lower than 80%; even our nearest neighbor, Canada’s, Debt-to-GDP is around 87% and Japan’s is over 100%; and every nation in Europes ratlio is over 80%. So although 17 trillion in debt isn’t necessarily the greatest thing – IT IS NOT THAT DISASTER THAT THE GOP KEEPS TRYING TO MAKE IT OUT TO BE!!!

      And as Y3FsG was pointing out, Bush ran up just while in office, around 6.2 trillion in debt; but adding to that, Bush is also responsible for 3.5-4 Trillion of the increases in our debt after leaving office for two reasons: 1) the numberous UNFUNDED pieces of legislation that he and several irresponsible GOP congresses passed while he was in office that are continuing to add to the deficits even today and 2) because he allowed the economy to fester into the worst financial disaster that has ever hit America. The financial impacts of the Big Depression are a drop in the bucket compared to the disasterous financial impacts of the Great Recession. In fact, the monitary impact of the Great Recession on just AIG by itself probably far exceeded the cumulative financial disaster of the Great Depression. America has expanded a great deal since in the late 1920s – so creating a large recession today dwarfs any similar such downturn 80 years ago.

      My final comment – Reagan and the 2 Bushes are responsible for more than 90% of that 17 trillion in debt that you brought up nonsensically..

  • Jim Myers

    The Republican Party should be taxed for the 24 Billion Dollars they cost the government.

  • RobertCHastings

    This is simply BS. Many of the Republicans in Congress were around during the ravages of the Bush administration, when profligacy was unattended by fiscal conservatism. The main reason the DEBT doubled during W’s tenure is very simple- increased spending with a huge reduction in taxes.

  • Dennis E Ivy

    Wonder if the Koch brothers are willing to pay back the money their lackeys cost the American people?

  • dpaano

    Let’s bill Senator Cruz and the Tea Party for the $24B they now cost us taxpayers for their ridiculous misadventures! Anyone agree?