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Shutdown Dents GDP by $10B

Thomas by Thomas
November 11, 2025
in Economy
0
Shutdown Dents GDP by $10B

The Congressional Budget Office quantifies Day 40’s shutdown scar at $10 billion permanent GDP hemorrhage under its five-week baseline—escalating to $14 billion if protracted to November 26—with Q4 growth cratering 1.2pp from 2.3 million furloughs and $24 billion deferred spending echoing 2013’s $24 billion tab. CBO’s October 29 scenarios—four weeks $7 billion, eight $14 billion—pin uncertainty on SNAP (50% post-October 31) and private plunge, consumer confidence at 89.2 nadir since 2022.

Furlough fallout: 1.4 million civilians unpaid—IRS audits -68%, EPA permits -82%—triggers 15% SBA denials, $3.0 billion airline losses from 1,500 daily cuts. SNAP: McConnell mandates $8.9 billion November via $5.3 billion reserves, rural lags 9 million, pantries +34%. States: NY $650 million EBT, CA $140 million bridges 45,000.

Macro: JPM Q4 1.6% from 2.2%, 0.4pp inflation; Goldman 1.15pp shave, Q1 +1.3pp backpay. Aviation: FAA 12% controllers ground Southwest 200 routes, 150,000 weekly stranded. Military: $16 billion secures pay, readiness erodes.

Bipartisan: 22 GOP float $120 billion defense; Schumer “hostage,” 72% blame split. CEA: $15 billion weekly—0.2% GDP—43,000 unemployed extensions. Private $280 million, Amazon $50 million vouchers 1.1 million contractors.

This dent unveils not day’s deficit, but impasse’s durable dance—veiled veils of $10B from furlough’s freeze, where economy’s artistry yields reinvention’s radius in shutdown’s majestic march.

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