Government shutdowns usually don't hurt the economy. This time could be different

Government shutdowns can be political earthquakes that paralyze Washington, DC. But for the economy, shutdowns are often barely a blip.

Whatever economic damage occurs during that time tends to be limited and quickly fixed. Even the last government shutdown – the record-long 35-day shutdown in 2018-2019 – had few long-lasting impacts on the US economy and financial markets.

That could very well be the case again this time around, especially if the looming shutdown proves to be brief. Yet there are reasons this episode could be different – and not in a good way.

The US economy in 2025 looks more vulnerable than during past budget fights. The job market is stumbling, and the Trump administration is threatening even more federal layoffs. A government shutdown would just add more chaos and uncertainty, at a time when there is already plenty of both.

https://finance.yahoo.com/news/government-shutdowns-usually-don-t-090052116.html

And if much of what the GOP wants becomes law it will fuck the economy too, especially the cutbacks on healthcare.