By Angel Lizardi |Staff Writer|
$24 billion–That’s how much is estimated the United States government lost during the shutdown according Standard and Poors, an economist group based in New York.
The firm said that the shutdown caused it to cut its forecast of gross domestic product growth in the fourth quarter by about 0.6 percentage points, lowering the gross GDP from 3 percent to 2 percent.
The shutdown, which ended last Tuesday, took three weeks to solve and affected hundreds of thousands of workers.
The breakdown of some of the economic costs due to the shutdown includes: $3.1 billion lost in government services, $152 million lost in travel spending, $76 million lost due to the national parks being closed, and $217 million was lost in federal and contractor wages in the Washington D.C. alone, according to Time magazine.
Texas Sen. Ted Cruz, in an interview said that this new deal still didn’t work and that it “sold our citizens down the river.”
Cruz believes that his own party acquiesced to themselves and believed that they could’ve gotten a better deal.
While the majority of people affected were federal government employees, small business owners were also affected as they could not apply for loans.
Tourism came to a halt and many military families had to go without many of their services needed, such as childcare.
Although the government was able to end the shutdown, it will come back.
The agreement signed by President Barack Obama only approves government spending until Jan. 15 according to The Washington Post.
Economists believe that because of the shutdown, consumers will feel less confident in making big purchases this holiday season.
Standard & Poors stated, “If people are afraid that the government policy brinksmanship will resurface again, and with the risk of another shutdown or worse, they’ll remain afraid to open up their checkbooks,” said the agency.
CSUSB students also felt that the shutdown was unnecessary.
Aimee Villalpando a senior at CSUSB, mentioned that the rest of the world is probably looking at us in a negative light.
“This just gives the whole world a reason to laugh at us,” said Villalpando.
“I already had my reservations about the government but for those that are not I feel like it might have been a shocker to see how petty and superficial our government can be,” said Villalpando.
Shadya Qasem a senior at CSUSB thought that no progress was made during these three weeks.
“I’m not surprised that the government would do this, but what I’m surprised about was how anti-climactic it all was,” said Qasem.
“I feel like we are in the same place as we were previously and with this signing only lasting until Jan., I won’t be surprised if we see this play out the exact same way,” said Qasem.
Reuters financial blogger Felix Salmon, in an interview with On the Media’s Bob Garfield mentioned that although the media portrayed that we dodged a bullet, the government really did not achieve much.
“In a very real sense, the government is in default on its obligations. They haven’t solved the problem but pushed it to a later date,” said Salmon.
Dr. Eric Nilsson a professor of economics at CSUSB said that congress has other important issues to address as well.
“The U.S. is not doing well economically– unemployment is still far too high, poverty rates have been higher than they were in decades, and wages are stagnating,” said Nilson.