An economic speed bump: How a US govt shutdown impacts wages and spending

If Congress refuses to offer furloughed workers back pay and the shutdown lasts weeks rather than days, the economic impact could be severe

President Donald Trump and Congress are once again on the verge of a partial federal government shutdown. If they fail to reach an agreement, it would be the third shutdown in two years.

The immediate and most visible impact of a shutdown is in the government’s day-to-day operations. Some departments and offices, like the Internal Revenue Service, would be closed, and nonessential federal employees across the government would stay home.

But beyond the individual workers and families affected, could a short or lengthy shutdown affect the broader U.S. economy as