The Ripple Effects of the U.S. Government Shutdown

As the global economy weakens and markets grow more volatile, it is hard to imagine a worse time to stop 25% of US federal spending for over a month. The government shutdown has already cut into the pocketbooks of hundreds of thousands of government employees and contractors who rely on a federal paycheck. While the markets have been largely ignoring it so far, the absence of so much government activity is gathering force. It’s hard to believe it won’t damage the economy.