There Will Be No $24B Economic Loss From the Government Shutdown

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The $24 billion number is a talking point which has no basis in reality as the attached article explains.

Washington DC was hurt (maybe) and some businesses around national parks may have been hurt (probably) but this money wasn’t “lost.” It didn’t evaporate. It was spent in other places doing other things. If money wasn’t spent which would have been, it was deployed as capital somewhere in the economy.

This mantra, that the economy “lost” $24 billion in the 13% shutdown of the federal government, is a blatant falsehood. (Though many economists will swear that they honestly believe this tripe.) That it has been repeated by the #oldmedia is sadly typical. They’ve got their orders.

(From Real Clear Markets.)

The news has been full of an estimate by Standard & Poor’s that the U.S. economy suffered a loss of $24 billion due to the government shutdown. Interestingly, the reports contain few if any details of where those losses came from and the Standard & Poor’s website does not seem to have any report backing up the figure either. I have found some of the suggested losses and they are all untrue. In reality, there will be no economic loss to the economy from the government shutdown.

Click here for the article.