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Fed shutdown an economic bummer?

EconoMeter panel considers the fallout if a shutdown takes place


Friday, October 2, 2015

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Kelly Cunningham, National University System
Answer: NO

As in the past, the government shutdown will not be a real “shutdown.” Only some functions are temporarily halted, such as closing national parks and furloughing relatively few non-essential employees. After previous government shutdowns, furloughed federal employees were retroactively paid and essentially ended up with free paid vacations. Although the federal government has a disproportionate impact on San Diego’s economy, primarily through military and defense-related spending, there will not be real lasting effects.