What will government shutdown do to the economy? It depends, says expert
Federal government budget battle impasse causes some complications
The federal government shutdown may cause some issues says Oakland University Professor Dr. Michael Greiner.
FOX 2 - Essential services like Medicare, Medicaid and the TSA will remain amid the federal government shutdown — but other areas of life will be impacted.
The backstory:
Some federal offices are scaling back amid the shutdown until a budget is worked out in Washington DC.
For example, about 41 percent of Department of Health and Human Services employees will likely be furloughed.
Then, there are questions about the economic impact. In 2018-2019 when there was a government shutdown, it cost the US government about $11 billion.
"I think the big question is how long it lasts," said Dr. Michael Greiner of Oakland University. "If we are going to have a long shutdown, then yes, it will really hurt the economy.
"We are already dealing with a number of factors that seem to be indicating the economy is in trouble - both in terms of hiring and in terms of inflation. Frankly, this could only make things worse."
The Source: Information for this story is from an interview with Dr. Michael Greiner of Oakland University.
WASHINGTON, DC - OCTOBER 01: The U.S. Capitol Visitors Center is closed to visitors during the federal government shut down on October 01, 2025 in Washington, DC. The government shut down early Wednesday after Congress failed to reach a funding deal.