Government shutdowns usually don’t hurt the economy. This time could be different | CNN Business
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Government shutdowns can be are often political earthquakes that paralyze Washington, DC. But for the economy, shutdowns are often barely a blip.

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.

  • ceenote@lemmy.world
    3·
    1 day ago

    Well, you presented it being the Democrats’ fault as a fact, my dude.

    It sounds like we generally agree, I’m just saying the Democrats seem to be totally be phoning in on messaging, when the facts are objectively in their favor.

    • danc4498@lemmy.worldEnglish
      1·
      1 day ago

      “Fault” implies judgement. I was making no judgement. But it is a fact that democrats are in control of if we shut down or not. It’s for the public to decide who is at fault.

      You’re right that Democrats aren’t great when it comes to messaging, but liberals are also much harder to satisfy than conservatives. Which means the leadership needs to walk a much tighter line and do things that aren’t popular with some of the party.

      Schumer got a lot of hate on here for not shutting the government down in March, but if you look at public perception, Trump’s approval rating dropped by 10% in the month that followed. If Democrats shut the government down, who knows how the public would have reacted.

      I’d argue that Schumer made the right decision last time, and maybe we need to give him some credit here as well. I know that’s an unpopular opinion among other liberals, but I am mostly concern that Democrats take back some sort of control in 2026. And they won’t do it with a fractured base.