How U.S. government “shut down” economy

The second day of US government seems to have a relatively insignificant impact on US’s as well as other countries’ economy, but what if last for a month or maybe even longer?

According to statistics, almost eight hundred thousands of government workers have stopped receiving salary and this is a big issue for majority of them. As a result, the sales of some business are anticipated to decrease which could result in a reduction in the workers’ working time as well as wages. These consequences may eventually go into a vicious circle and cause a severe damage to US’s economic system.

For some Canadian companies that export products to the U.S., they may expect their goods to stay at the border for a longer time and therefore cause inefficiency.

Canadians should be aware that Canada’s economy are stable yet susceptible to variability in U.S. and Europe since many Canadian businesses somewhat restricted by other countries’ regulations.

Sources:http://globalnews.ca/news/876912/us-businesses-worry-about-a-prolonged-shutdown/

http://globalnews.ca/news/873079/us-govt-shutdown-bad-news-for-canadian-economy-at-tipping-point/

 

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