Last month’s shutdown of the federal government will take a toll on the U.S. economy, according to a new report from the White House Office of Management and Budget. The shutdown, which was the second longest since 1980, will reduce fourth quarter Gross Domestic Product growth by 0.2-0.6 percentage points and may have resulted in 120,000 fewer private-sector jobs created.
Other economic losses include paying federal employees who were furloughed at a cost of roughly $2 billion, according to the White House. The closure of national parks and Smithsonian museums resulted in an estimated $11 million in lost revenue from fees and $500 million in lost visitor spending.
In terms of services, the shutdown prevented the National Science Foundation (NSF) and other science programs from issuing new grants. On average, NSF issues about 765 grants and continuations in a two-week period. The shutdown also prevented hundreds of patients from enrolling in clinical trials with the National Institutes of Health. NSF’s U.S. Antarctic Program was transitioned into caretaker status, resulting in the cancellation of some research activities for the 2013-2014 season. Researchers at the U.S. Geological Survey missed their window of opportunity to complete field testing of a technology to prevent the spread of Asian carp in the Great Lakes.
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