Depending on how long it lasts, a government shutdown could deliver a harsh blow to the nation’s fragile economy. For starters, 800,000 federal employees will stop receiving paychecks, and may or may not get back pay later. Many more private firms with government contracts will not be paid. Small businesses, which account for about half of U.S. job growth, will not be able to receive loans from the Small Business Administration. Finally, while Social Security and SNAP (Food Stamps) payments will continue, new enrollees may not be able to apply for benefits. By most estimates, those two programs keep millions of Americans out of poverty. Because of these and other effects, if it lasts a month (the 1995 shutdown lasted 21 days), it is estimated the shutdown will take $55 billion out of the economy. What we risk is essentially a stimulus in reverse that might throw the economy back into recession.







