Oct. 17 - The recent government shutdown has hurt the U.S. economy by $24 billion , says Standard & Poor's. Conway G. Gittens reports.
Standard & Poor's says the recent government shutdown has taken $24 billion out of the economy, and that's your Daily Digit. Federal employees are now returning to work after Congress reached a deal to reopen the government and extend its borrowing authority through February of next year. Barricades are coming down, national monuments and museums are now open for business. But the deal did nothing to resolve the underlying disputes that led to the crisis in the first place, leading many to fear that the standoff may play out again in a few months. Beth Ann Bovino, the company's U.S. chief economist, says for each week the government was closed, the U.S. economy lost 0.3 percent in growth. SOUNDBITE: BETH ANN BOVINO, U.S. CHIEF ECONOMIST, STANDARD & POOR'S (ENGLISH) SAYING: "We haven't really dealt with the long term issues, which is both Medicare and Social Security. Those are still, those will climb higher if nothing is done and that is a concern." And this uncertainty, says S&P, might keep people reluctant to open up their checkbooks, which "points to another Humbug holiday season."