This CNBC article, published last week, talks about how the U.S. federal government has just shut down. The shutdown started after Congress failed to reach an agreement on a funding bill before the deadline. The article goes on to talk about the immediate impacts on federal workers, disruptions to non-essential government services, and the political stalemate that could lead to a long shutdown. The piece also highlights how potentially 750,000 federal employees could be furloughed.
The broader economic impact of the shutdown will be significant, and the longer the shutdown goes on, the bigger the impact might be. The nonpartisan Congressional Budget Office (CBO) estimates that a four-week shutdown could reduce U.S. GDP growth by 1% in the fourth quarter of 2025, with losses getting exponentially worse as time goes on. This contraction results from reduced federal spending, furloughed federal employees who have to conserve money, and interruptions to social programs like SNAP (food assistance). Many of the consequences are not reversible, as the CBO estimates there could be billions of dollars in permanent GDP losses. Extended shutdowns also undermine consumer confidence and hinder investment, which is particularly alarming considering the already fragile economy. Adding that on top of the supply chain disruptions, regulatory delays, and uncertainty around federal contracts will create doubt and worry in the private sector.
The shutdown will hurt low- and middle-income households the most, as they are most dependent on government programs. Furthermore, everyday life for citizens can be disrupted. For example, if the shutdown continues on for an extended time, there could be a lack of air-traffic controllers and air travel may need to be limited. That will obviously impact airline companies, but also all companies that depend on air travel for shipping their products. Air travel is just one example where the government shutdown can cause major disruptions for Americans; there are many industries that rely on government employees to run.
This CNBC article, published last week, talks about how the U.S. federal government has just shut down. The shutdown started after Congress failed to reach an agreement on a funding bill before the deadline. The article goes on to talk about the immediate impacts on federal workers, disruptions to non-essential government services, and the...
This CNBC article from earlier today discusses how OpenAI CEO Sam Altman thinks that the artificial intelligence market might be in a bubble. Altman compared today's AI enthusiasm to the dot-com bubble of the late 1990s, where inflated valuations led to a market crash. Altman acknowledged the revolutionary potential AI has, but cautioned that...
As reported in this Reuters article, President Donald Trump just signed a sprawling legislative package of tax cuts and federal spending reforms. The legislation, named the "One Big Beautiful Bill Act," passed after weeks of negotiations and razor-thin House and Senate votes. This bill is Trump's first big legislative achievement of his second...