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Title: Was the government shutdown good for the economy? Post by: altoidmintz on November 11, 2013, 08:47:07 PM tldr, imho yes:
http://afterecon.com/economics-and-finance/government-shutdown-good-job-market/ Title: Re: Was the government shutdown good for the economy? Post by: NUFCrichard on November 11, 2013, 09:20:26 PM It certainly showed that lots of the government workers aren't necessary for the running of the country.
If that leads to the realisation that the government isn't required in every part of our lives, then yes it was definitely a good thing. A more direct answer to you question is that it was probably neutral, why would it not be really? Title: Re: Was the government shutdown good for the economy? Post by: altoidmintz on November 12, 2013, 01:52:09 AM A more direct answer to you question is that it was probably neutral, why would it not be really? Because while government is shutdown expectations are stable and regulation temporarily ceases while free market innovation continues, creating a small increase to the relative private/public power ratio. Also, while furlowed workers and so on all received back pay, during the shutdown government consumption and production was lessened, reducing the crowding out effect of the public on private sector somewhat. Title: Re: Was the government shutdown good for the economy? Post by: altoidmintz on November 12, 2013, 01:53:30 AM A more direct answer to you question is that it was probably neutral, why would it not be really? Because while government is shutdown expectations are stable and regulation temporarily ceases while free market innovation continues, creating a small increase to the relative private/public power ratio. Also, while furlowed workers and so on all received back pay, during the shutdown government consumption and production was lessened, reducing the crowding out effect of the public on private sector somewhat. And the fact that based on the ceteris paribus assumption, which would be equivalent with the neutrality hypothesis, job creation and economic performance were dramatically under-forecasted. Title: Re: Was the government shutdown good for the economy? Post by: Elwar on November 12, 2013, 03:01:49 AM The 15% shutdown of useless jobs which were all backpaid was useless.
Title: Re: Was the government shutdown good for the economy? Post by: NUFCrichard on November 12, 2013, 10:21:41 PM Or they have been over reported this month. Best to get good numbers out of the way now, then next month give out a stinker of a number to make sure QE infinity can go on unabated...
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