US Government Shutdown Enters 45th Day, Costing Economy Billions Amid Calls for Resolution

Marketing Admin
Nov 16
6 min read

The United States federal government shutdown, which began on October 1, 2025, has now entered its 45th day as of November 13, marking it as the longest in American history and surpassing the previous record of 34 days set in 2018-2019. This prolonged impasse has inflicted severe economic damage, with federal workers missing an estimated $16 billion in wages and broader ripple effects including canceled flights, stalled research and development (R&D) in key tech sectors like artificial intelligence (AI) and semiconductors, and delays in tariff implementations that could exacerbate inflation. As calls for resolution intensify from lawmakers, unions, and the public, weekend analyses are anticipated to underscore weakening economic activity based on the Federal Reserve's Beige Book, alongside a surge in gold prices as a safe-haven asset and warnings of persistent GDP drags extending into 2026. This domestic crisis dominates headlines, with significant buzz on X regarding fiscal fallout and potential Supreme Court rulings on tariffs that could mandate up to $200 billion in refunds.

Economic Toll: Billions Lost and Permanent Damage

The shutdown's economic impact is staggering, with estimates ranging from $7 billion to $16 billion in weekly losses, according to the White House Council of Economic Advisers and the Congressional Budget Office (CBO). The CBO projects a $18 billion reduction in GDP for the fourth quarter of 2025 alone, with $7 billion to $14 billion in permanent losses that won't be recovered even after resolution. These figures highlight how the shutdown is dragging down overall economic growth, potentially leading to negative GDP in the quarter if it persists. Broader effects include suspended federal spending of up to $74 billion if the crisis extends further, compounding issues for local communities and industries.

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Federal Workers Bear the Brunt: $16 Billion in Missed Wages

Approximately 600,000 federal employees have been furloughed without pay, while others work unpaid, resulting in about $16 billion in lost wages by mid-November. If unresolved by December 1, withheld paychecks could reach 4.5 million, totaling $21 billion. This has led to reduced consumer spending, with workers facing financial hardship, as highlighted by unions calling for solidarity and by nationwide protests. The shutdown's human cost is evident in stories of missed pay periods affecting over a million employees.

Sector-Specific Disruptions: Canceled Flights and Stalled Tech R&D

The transportation and aviation sectors are reeling, with flight cancellations and delays worsening amid staff shortages at agencies like the FAA. The tech industry faces a data void from halted government reports, chilling sentiment and stalling AI progress, as well as disruptions in cybersecurity and R&D for semiconductors. Scientific research across federal agencies is frozen, with long-term consequences extending beyond funding lapses. These impacts underscore the shutdown's role in hindering innovation and infrastructure.

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Delayed Tariffs and Inflation Risks: Duties on Chinese Tech at 60%

The shutdown has indirectly delayed some tariff implementations, amid ongoing US-China trade tensions where duties on Chinese tech could rise to 60% through combined measures. Yearlong delays on export restrictions and tariff adjustments have been announced, potentially fueling inflation as import costs climb without resolution. This adds to economic uncertainty, with tariffs on fentanyl-related goods and other imports exacerbating price pressures.

Fed's Beige Book Signals Weakening Activity

The Federal Reserve's latest Beige Book, released amid the shutdown, reports little change in economic activity but notes slight declines, with employment stable and modest price increases. Weekend analyses are expected to amplify concerns over subdued growth, with the shutdown complicating data assessment and increasing downside risks. This paves the way for potential rate cuts in 2025 and 2026.

Gold Surges as Safe-Haven Amid Uncertainty

Gold prices have surged above $4,000 per ounce, acting as a haven asset during the shutdown, with gains driven by labor-market worries and expectations of delayed economic data, strengthening rate-cut bets. The rally reflects broader debt concerns and geopolitical risks, with prices rising despite a potential resolution to the shutdown.

GDP Drags Extend into 2026: Long-Term Warnings

Experts warn of lingering GDP drags into 2026, with the shutdown shaving 0.8 percentage points off quarterly growth and causing permanent productivity losses. Cumulative effects could reduce GDP by $70-90 billion if prolonged, impacting hiring and output.

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Supreme Court Tariff Rulings: Potential $200B Refunds

Adding to the fiscal drama, the Supreme Court is weighing the legality of Trump's tariffs, with up to $200 billion in revenues at stake and potential refunds if ruled unlawful. This could shake federal finances and trade policy, with revenues already ballooning to $195 billion in fiscal 2025.

X Buzz and Public Sentiment: Fiscal Fallout Dominates Discussions

On X, conversations are abuzz with concerns about the shutdown's fiscal fallout and economic impacts, and with urgent calls for a resolution, reflecting widespread anxiety about the crisis's domestic ramifications.

In summary, the 2025 US government shutdown represents a profound economic and political challenge, with billions in costs, sector disruptions, and long-term implications demanding swift action.