It’s interesting how it failed. I think the Dems basically said - “no thanks to a 30% cut in spending and reneging on the deal you agreed to earlier this summer”, and the hard line republicans didn’t get everything they wanted and gave the middle finger to McCarthy siding with the Dems and torpedoing its chances.
can someone explain how a government shutdown “costs” anything at all? Sure, National Parks aren’t open, so some people don’t get to visit. But they still have their entrance fees in their pockets if they didn’t go there, or they will give their dollars to the local art museum or whatever so the money still goes into the economy. I’m just an actuary, so maybe I’m not smart enough to understand “popular media economics”, but I don’t get why it matters.
There are a lot of federal employees who will lose out on incomes. E.g., House members keep getting paid during the shutdown, their staff has paychecks deferred until the end of the shutdown, but almost everyone else who works at the Capitol lose out completely on their paychecks during the shutdown. So the House Republicans are biting the hands that feed them.
Wikipedia has this comment as regards the last government shutdown:
Yes, we would have paid those furloughed workers anyway had the government remained open…but we (in theory, at least) would have received the benefits of their labor for that pay.
Maybe the biggest cost of these shutdown negotiations is the distraction effect? That is, the politicians could be doing something more productive with their time like focusing on other, progressive legislation that actually benefits Americans? So much time seems to be spent on showboating and posturing.
My impression is that it is essentially unscheduled, uncertain, delayed paid-time-off.
So, if you were an actuary at social security, you’d be sent home, without pay, for an uncertain amount of time. Then probably a month later, pulled back in and paid.
I dont know how you’d define that cost, but it’s not a good way to run a business.
The orher cost is the potential hit to credit rate. The US government basically the definition of risk free credit, but they throw that into question on shutdown days.