What are the economic consequences of a government shutdown?

A government shutdown happens when people who work for the government stop working because they don't get paid anymore, it’s like a big pause button on everything the government does.

Imagine you have a piggy bank full of money, and every week you take some out to buy snacks or toys. Now imagine your piggy bank is empty, and you can’t buy anything until someone gives you more money. That's what happens during a shutdown, government workers stop doing their jobs because they don't get paid.

What the government does stops

When the government shuts down, things like national parks, air traffic control, and even food stamps might not work properly. It’s like turning off the lights in a big house, some parts are dark, and people can’t do their usual activities.

People feel it too

Workers who don't get paid have to use their own money to buy food or pay bills. It's like when you forget your lunch money on Monday and have to borrow from a friend. If the shutdown lasts long, it can make families worry about how they’ll pay for things like rent or groceries.

Sometimes people say it feels like a game of tag, the government tries to catch up with its work after the shutdown is over.

Take the quiz →

Examples

  1. A government shutdown happens when Congress can't agree on funding, and federal workers may lose pay or be furloughed.
  2. During a shutdown, national parks close, and people who rely on government help might not get their money on time.
  3. The economy can slow down because fewer people are spending money during a shutdown.

Ask a question

See also

Discussion

Recent activity