During the govenrment shutdown, the market didn’t seem to be affected.
The impact of US government 2013 appeared not to affect too much of most citizen’s daily life. As For leaders in all industries, it creates an uncertainty and uncertianty is the last thing one wants when making decisions. Uncertainty usually will diminish the firm’s willingness to continue to expand their business or hire more people as they’re not sure if they’d have their expected return. In addition, as a lot of federal employees will recieve an un-paid leave, the willingness to spend for those people will decrease, and hence less sales for the companie, which might cause a chain effect of recession. However, on the contray, during the 3 weeks time, they have continued to hire more people and expand their business as stated in the article. This may be due to a steady demand from overseas, as the article also stated Manufacturing industry alone increased by a healthy 19,000 over the 3 weeks. As what Phebe Kwok have mentioned in her blog, that depreciating many external values may lead to world-wide recession, which occured in history, therefore, it may be in turn for the international community and firms to act themselves to prevent such happening, which reduced the impact of the government’s shutdown.
Source:http://www.theguardian.com/business/2013/nov/08/upbeat-us-jobs-data-december-tapering-federal-reserve