How will shutdown affect Washington area economy?

With President Trump saying the partial government shutdown could go on for months or years as Congress refuses to agree to funding for the president’s desired border wall in exchange for reopening the government, prospects don’t currently look good for a resolution. Given the large number of people in this region negatively impacted by the federal shutdown, what will this stalemate mean for the Washington-area economy and consumer buying behavior?


An estimated 145,000 federal workers in the Washington region are furloughed, according to Stephen Fuller, head of the Stephen S. Fuller Institute at George Mason University. If the situation is not resolved by this Friday, when these workers would normally receive their next paycheck, they will lose a combined $15 million a day in pay, he estimated.


Members of Congress have indicated they will give federal workers back pay when they return to work. But federal contractors, and the businesses that depend on spending by federal workers, will likely not be paid for the lost time.


If the shutdown continues for two more weeks, it could possibly trigger a mild recession, mainly because of the uncertainty, Fuller told WUSA-TV.


What the standoff means for auto dealers and regional motor vehicle sales remains to be seen. Assuming a relatively quick resolution, it could just mean a delay in auto sales and major repairs.

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