Most government shutdowns have a negligible macroeconomic impact, often lasting just a day or two, and this one might be no different. Even if it drags on, the effects should remain modest, with essential services continuing to operate and furloughed federal workers eventually receiving back pay. What sets this shutdown apart is the threat of permanent layoffs for non-essential federal staff, which, while possibly political bluster and subject to legal challenges, could prolong the drag on public sector payrolls.
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