The government’s closure costs taxpayers per day in a federal back wage

Continuous The government closing It can carry the costs of American taxpayers and the economy as it continues until the financing is finally restored.

The closure began on Wednesday, October 1, after the Democrats refused to support the legislation to extend government financing to the fiscal year 2026. Republicans put forward clean draft laws to restart government operations, while Democrats pressed an extension to support the enhanced obamacare that was implemented during the epidemic on sunset at the end of this year.

While the closure of federal government operations may seem as if it will reduce federal spending, this was not the case in the previous closure due to costs of costs Compensation of federal workers With their background salaries, suspending and resuming government operations, and economic activity.

The main federal workers continue to work during the closure and give up their salaries until the financing is restored, while unnecessary workers have been neglected and they will also receive their salaries under federal law.

The government is turned out to the weekend while the Senate Democrats are prohibited

The 2019 report from the Internal Security and Government Affairs Committee of the Senate found that the previous three government closure cost at least at least at least 3.7 billion dollars in the rear wage To federal workers for 54 days of closure between those three closure.

It also set $ 338 million at other costs resulting from the closure, such as additional administrative work, loss of revenues and later fees on interest payments. The burden of high administrative work comes from federal workers who have to be prepared to close it before it begins, in addition to taking steps to restore normal operations as soon as it ends.

the Congress Budget Office (CBO) He wrote in a letter to Joni Ernst, R-IOWA, before closing that about 750,000 workers may be subject to a cost of about $ 400 million a day.

Government closure begins, but analysts say markets are historically well weather disturbances

In its message, the Central Bank of Oman told Ernest that the economic impact of the government’s closure “depends on a duration and duration.

It found that the partial closure for a period of five weeks that ended in January 2019 was late for compensation and the purchase of goods and services, which was estimated that while most of the missing GDP growth will not be recovered in the end, about $ 3 billion will not be recovered. This reached 0.02 % of the annual GDP in 2019.

The Central Bank of Oman also found that the closure that delays the compensation of federal workers reduced consumer spending, while federal spending depends on goods and services reduced the private sector income from these transactions. Economic product It was diluted as a result, although the opposite is once the workers returned.

The job report is delayed in September due to the government’s closure – what was expected to show?

The Central Bank of Oman said that it expects whether the government closure is continuing for several weeks, some private sector companies may recover the income that it lost due to the suspension of federal activity.

The agency added that it is not clear the cost of delayed federal purchases and engraved contracts, because it is likely to depend on the closing period, although the experience in closing only a few days is likely to lead to slight disorders only.

The government’s closure waving on the horizon: How does it affect the economy?

Goldman Sachs Economists said in a report that every week the government continues to be closed, the federal signals will reduce the fourth annual growth rate on a 0.15 -point real GDP in the fourth quarter. Economists explained that this will be followed by a positive growth impact in Q1 2026 on an equal basis on the assumption that stopping the operation ends before that.

“The influence on federal goods and services should be small in a short closure, but it can be offered from growth in the state of prolonged closure,” Economics experts in Goldman explained.

“While most of the purchases of goods and investment in equipment is likely to be formed later in this quarter, services by private contractors as well as investment in developing research and development of software during the closure,” economists continued.

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They added that these effects emerged to a limited extent in the closure for about five weeks that ended in January 2019, but it was not clear in the shortest closure.