Shutdown and Debt Crisis Hurting Economy Bigtime [AUDIO]
As Washington wrestles with a solution to a stalemate, shutdown and crisis, the economy is feeling the squeeze as the clock ticks on the deadline for debt default.
A new report shows the US Government's stumble from one crisis to another has cost the economy 900,000 jobs since 2010, with a drop in economic growth of one percent. That comes as a conclusion from a new report by research firm Macroeconomic Advisers for the Peter G. Peterson Foundation.
The report concludes that the resulting "fiscal drag, in combination with heightened fiscal uncertainty, has slowed the annualized rate of growth in the nation's gross domestic product by as much as one percentage point since 2010."
As to the economic impact of a default on the Fed's debt, Rutgers economist James Hughes says, "this is truly uncharted territory, and we have no benchmarks to guide us on what's going to happen. But again, we know it's not going to be good."
Hughes agrees the uncertainty in Washington translates into uncertainty about hiring and investment and scares the consumer away from spending money until the fog is lifted.