If it comes to a shutdown, how would the consequences be felt? What impact does this have on the American economy? “So, for the aggregate economy, it is probably not a major effect because all of these workers do not get paid for a week or two – or however long the shutdown lasts. They do get backpay when the agreement and the budget is finally passed. So, there’s a timing shift in terms of when the pay is paid to the workers but it’s not like that money is lost – that money will be spent eventually,” says Eric Swanson, UC Irvine professor of economics.

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