That’s how much a partial government shutdown costs the U.S. per day in lost economic output, according to global market research firm IHS Inc.
Though the number is a fraction of the country’s $15.7 trillion annual economy, “the effects may grow over time as consumers and businesses defer purchases and expansion plans,” Bloomberg’s Roxana Tiron, Kathleen Hunter and Heidi Przybyla reported yesterday, as the government began its first partial shutdown in 17 years.
Government spending “touches every aspect of the economy, and disruption of spending, more than the direct loss of income, threatens to damage investor and business confidence in ways that can seriously harm economic growth,” said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia, according to this Bloomberg story by Jeanna Smialek and Ian Katz.
President Barack Obama and Democratic allies oppose Republican plans to curb Obama’s health-care law as a condition of funding government operations. Republicans say the law isn’t ready to go into effect and that more Americans oppose than support it.
The law’s health-care exchanges debuted yesterday and “struggled to handle a flood of consumer interest that closed the U.S. website for much of the day, and causes start-up delays for most of the marketplaces run by the states,” Bloomberg’s Alex Nussbaum reported.
House Republicans yesterday proposed three piecemeal bills to fund the Department of Veterans Affairs, the National Park Service and the government of the District of Columbia.
Obama would veto the bills, White House spokeswoman Amy Brundage said in an e-mail yesterday that described the piecemeal efforts as “not serious” and “no way to run a government.”
Democrats say that the Republican-led House should pass a “clean” stopgap spending bill that funds all government operations. A few House Republicans, including Reps. Scott Rigell of Virginia and Pat Meehan of Pennsylvania, endorsed this approach yesterday while criticizing the Democratic-led Senate for rejecting the House’s previous proposals.