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The United States has entered uncharted economic territory as the federal government shutdown stretches into its 36th day, officially becoming the longest in American history and inflicting a rapidly escalating financial toll, said a Bloomberg report. Economists estimate the impasse is wiping out $10–$30 billion a week in economic activity, with most forecasts clustering near $15 billion weekly losses , a scale not seen in previous shutdowns. “Shutdowns used to be disruptive, not destructive,” said Jonathan Millar, Senior US Economist at Barclays. “This time could be different.” Why This Shutdown Hurts More Unlike the 2018-2019 standoff , the previous record holder , the current shutdown lands at a time when: Inflation anxieties remain highConsumer confidence has been fragileJob market momentum is slowingFamilies are entering the holiday season with tighter budgetsAnd the damage has moved far beyond furloughed workers and closed monuments. Workers Forced to the Edge Roughly 650,000 federal employees are without pay, and the Trump administration has signaled it may oppose retroactive pay, further rattling households. In Arkansas, Seneca Blount, a furloughed federal labor examiner and military veteran, has already dipped into retirement savings to pay rent and child-support. “Bills don’t care about furloughs,” Blount said. “I don’t know how long I can do this.” Economists at Bloomberg warn the official US unemployment rate could spike to 4.7% once data catches up. Ripple Effects Across Private Sector With an estimated $24 billion in federal procurement on hold, private contractors are freezing hiring, considering layoffs, and delaying projects. Small businesses relying on federal loan pipelines are also caught in the crossfire, the Small Business Administration says 4,800 companies are currently blocked from accessing $2.5 billion in loan funding. “Businesses need government to function,” the US Chamber of Commerce warned. Millions Face Food-Aid Cuts The disruption to federal benefits programs has created a humanitarian risk. The SNAP food-assistance program, serving 42 million Americans, will partially fund November benefits after a court order, but only 50% of normal disbursements are assured and distribution may be delayed. In Tennessee, single mother of two, Melissa Lewis, says she fears running out of food for her children. “I’ve never felt this helpless,” she said. “We’re suffering while they’re fighting in Washington.” Food banks from Texas to Miami are already reporting surging demand. Head Start & Childcare Hit More than 8,000 children have already lost access to Head Start early-education and childcare programs , a number expected to rise every day the government remains closed. Policy Trigger: Health-Care Subsidies Fight At the core of the standoff are health-care subsidies enacted in 2021 that lower Affordable Care Act premiums for roughly 20 million Americans. The credits expire at year-end, and the political standoff over their extension has triggered a historic paralysis. Holiday Season Threat Economists say the shutdown could slash up to 2 percentage points off Q4 GDP, and potentially wipe out $14 billion permanently if it drags into Thanksgiving week. “If this extends into holiday spending season, the damage compounds dramatically,” cautioned Mark Zandi of Moody’s Analytics. Bottom Line This is no longer a routine Washington battle. The shutdown is hitting: Federal workersLow-income familiesBusinesses and startupsHoliday-season consumer sentimentAirport operations and tourismChildcare and education programs What earlier crises treated as temporary noise has turned into a sustained national drag , with the US economy now bleeding billions by the week and pressure building for a political reckoning.
