Shutdown Would Shave Fourth-Quarter U.S. Growth as Much as 1.4%

[xchrom]

http://www.bloomberg.com/news/2013-09-27/shutdown-would-shave-fourth-quarter-u-s-growth-as-much-as-1-4-.html

A shutdown of the U.S. government would reduce fourth-quarter economic growth by as much as 1.4 percentage points depending on its length, economists say, as government workers from park rangers to telephone receptionists are furloughed.

Mark Zandi of Moody’s Analytics Inc. estimates a three-to-four week shutdown would cut growth by 1.4 points. Moody’s projects a 3 percent rate of growth in the fourth quarter without a closure. A two-week shutdown starting Oct. 1 could cut growth by 0.3 percentage point to an annualized 2.3 percent rate, according to St. Louis-based Macroeconomic Advisers LLC.

A shutdown would slow the expansion because output lost when workers are furloughed subtracts from gross domestic product. The combined prospect of a budget standoff between the White House and Congress and haggling over the debt ceiling could have a bigger impact on the economy as businesses hold off on investment and households delay spending.

“What we have is a political and not economic maelstrom,” said Bernard Baumohl, chief global economist at Economic Outlook Group LLC in Princeton, New Jersey. “What everyone is watching right now is if the uncertainty is affecting consumer and business psychology, that they are postponing spending until they get more clarity about what’s going to happen in Washington.”

[B Calm]

1. It will also cost the republicans the House of Representatives.

[liberal N proud]

2. Are they trying to drive the country back into recession?

And then blame Obama for it?

Just wondering!