There is a raft of stories coming from the media now in anticipation of a government shutdown. Most have the same basic theme: A shutdown of the government would affect the economy at a time that it can’t afford any slackening in government spending.
“A federal government shutdown,” writes the online magazine Meetings and Conventions in a typical broadside warning about a shutdown, “would cost the U.S. travel sector at least $185 million per day in economic output due to lost activity and would affect 530,000 travel-rated jobs due to temporary layoffs, reduced wages and fewer hours worked, according to the U.S. Travel Association.”
Well, if this one thing that is certain in the world—besides death and taxes— it’s that every year, every dollar of the federal budget gets spent, whether there is a shutdown or not.
The fact that a few government economists will have to put off their annual convention where they talk about how to turn their theories regarding harrying and harassing common folk into actual policies and laws that harry and harass common folk is, for me, an unintended but key benefit of such a shutdown.
In a shutdown, government employees, government contracts and the like may have payments postponed, but ultimately the money finds its way into the economy. And I distinctly remember that in October 2013, when the government was shutdown for a few days, there was little leverage that Obama and the Democrats could find in terms of economic damage done to the nation. As I pointed out during the last shutdown, since the government will spend extra money to put the government into and then out of mothballs, Democrats should be happy about the extra “stimulus” provided by Evil Republicans Intent On Destroying the Country by Slashing Government Growth by Raising it Annually by 3 Percent…Only.
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