Thursday, October 17, 2013

U.S government shutdown ends but at what cost

It is estimated that the government shutdown cost the U.S $24 billion. Moreover, the country's credit rating is in doubt and international confidence in U.S credit is in doubt. Will this drama be repeated come next year?

Mark Wilson / Getty Images
Open for business, but the shutdown cost plenty. The U.S. Capitol building
is shown on the morning after a bipartisan bill was passed by the
House and the Senate to reopened the government and raise
 the debt limit, on October 17, 2013.

"The shutdown also forced non-government business losses, temporary layoffs and other interruptions in business spending. The full extent of the damage won’t be known for some time. Economists at Standard & Poor’s estimate the total cost at about $24 billion, or a 0.6 percent GDP haircut. Others guess it's about half that. Either way, it's a heavy price to pay."

Read more here.

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