What Did The Government Shutdown Achieve?
Econintersect LLC | Oct 20, 2013 06:05AM ET
I enjoyed the but there is question whether this would have survived constitutional review at that time**.
**Congress retroactively blessed Lincoln’s actions.
What good would a unilateral Presidential action be in 2013 – would you buy a debt document where there was a question of its validity? Anyway, the shutdown is over – and there is a considerable backlog of government reports. These catch-up reports should be published within the next few weeks.
The impact will cascade, and the scheduled releases for next week will likely will be late also. The various government manpower and data gathering systems are sized for a release schedule spread over a month. The cascade therefore will likely impact data releases for at least a month.
In the end, the shutdown ending compromise is again kicking the can down the road – the debt ceiling and government funding is only for 3 months.
- no long term solution to debt ceiling (such as eliminating the ceiling as Congress both authorizes expenditures and taxation, and has full control over government debt).
- seemingly unwillingness to compromise by right and left wing fringe – I fear people who destroy rather than allowing an opposing idea to proceed.
- no can kicking to date (the last six years worth) has resulting in a long term solution.
There is no question that the government costs (compared to not shutting down) are higher. As a pragmatist, I see no gain but damage caused.
Other Economic News this Week:
The Econintersect economic forecast for Rail movements growth trend is continuing to accelerate.
All other data released this week either does not have enough historical correlation to the economy to be considered intuitive, or is simply a coincident indicator to the economy.
Weekly Economic Release Scorecard:
Click here to view the scorecard table below with active hyperlinks
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