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The first U.S. federal government shutdown in 17 years went into effect today, with as many as half of federal employees being furloughed or put on indefinite leave. Though most of the 17 federal shutdowns in U.S. history have lasted less than 3 days, the most recent shutdown in 1995, lasted for 3 weeks, and the current deadlock in congress has warranted concerns that this shutdown could last even longer.

The Cost to The Economy

Bank of America Merrill Corp has projected that the federal government remaining closed for two weeks would cut their fourth-quarter estimate of economic growth by 0.5 percent. A memo from Ethan Harris, an economist with Global Economics Research, placed the drop in Q4 outlook at 2 percent, if the shutdown remains in effect for a month.

A report from IHS Global Insight estimates a cost of $300 million to the economy for every day the federal government is shutdown. Though, this is a relatively small…