That a prolonged shutdown could damage the economy should come as no surprise, considering that federal spending makes up 20% of the United States’ gross domestic product. Granted, much of that spending — including Social Security benefits, the military budget and Medicare — isn’t affected by the shutdown. But because of the sheer number of agencies, programs and contracts all across the country that have been cut off from the Treasury, the effects ripple far and wide as paychecks aren’t received or spent on food, clothing, entertainment, supplies and services.
Source: latimes.com – Los Angeles Times