The US Government shutdown and economic influence

The U.S government has partially shut down after midnight of October, 1st, 2013 because Congress failed to pass the expenditure budget for, which makes up to 800,000 federal workers faced life without a paycheck. As it is the first shutdown in nearly 18 years, the main reason of this is that both the House and Senate refuse to pass the budget and health care reform.

The economic influence of such event not only effect the US nation, but also the whole world.  The economic growth will decrease by 1.2%. In addition, the gold price already dropped 3% on the first day of the shutdown and it is expected to continue to go down.On the other hand, tourist industry has been impacted greatly because of this. As the day of shutdown if exactly at the National Day of China, thousands of tourists from China failed to visit all the places which they previously expected to go. Moreover, the shutdown also has negative influence on domestic economy. It is obvious that those federal workers who are facing employment tend to reduce their daily expense, which, in return, can not bring positive incentive to economy.

http://www.cnn.com/2013/10/01/politics/government-shutdown/

http://www.cbc.ca/news/world/u-s-government-shutdown-security-services-stretched-thin-1.1875644

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