News Summary
The recent government shutdown is set to cause significant economic challenges in Georgia and South Carolina, with estimates projecting billions in losses and increased unemployment. The Council of Economic Advisors (CEA) highlights that Georgia could see a decline of $2 billion monthly in GDP, with rising unemployment rates, especially among federal workers. Both states face disruptions in welfare programs and services, impacting the most vulnerable residents. Small businesses also brace for delays and reduced consumer spending, emphasizing the widespread implications of the shutdown on local economies.
Atlanta, Georgia – The recent government shutdown is projected to have detrimental economic impacts on both Georgia and South Carolina, with estimates suggesting billions in losses and rising unemployment rates across both states. The Council of Economic Advisors (CEA) has conducted an analysis to outline the potential fallout from this situation, and the numbers are significant.
The CEA estimates that Georgia’s Gross State Product will decline by approximately $458 million each week during the shutdown, totaling around $2 billion per month if the impasse lasts for an extended period. Additionally, an estimated increase in unemployment of about 1,400 workers in Georgia is projected if the shutdown persists for one month.
In South Carolina, the situation mirrors that of its neighbor. The Gross State Product is estimated to decline by around $188 million each week, resulting in an estimated loss of roughly $816 million per month. The unemployment rate in South Carolina may rise by around 700 workers should the shutdown also last one month.
Welfare Programs and Federal Services Impacted
The shutdown will also affect key welfare programs in both states. While SNAP benefits will continue for approximately 30 days before potential disruption, Georgia has approximately 1,356,000 total enrollees in SNAP, with about 526,000 being children. South Carolina has around 568,000 total SNAP enrollees, including approximately 220,000 children.
Social Security recipients who receive checks rather than direct deposits are at risk of delayed payments, affecting around 13,200 seniors in Georgia and 6,700 in South Carolina. Furthermore, funding for the Women, Infants, and Children (WIC) program stops immediately during a shutdown. Georgia has about 231,000 WIC recipients, while South Carolina has around 99,000.
Impact on Small Businesses and Consumer Spending
The repercussions are also significant for small businesses. Georgia’s small businesses will face delays of around $131 million, while businesses in South Carolina are projected to experience around $41 million in delays due to the shutdown. Consumer spending will also be heavily impacted, with lost wages in Georgia forecasted to fall by $1 billion each month, and South Carolina estimated to see a decline of about $434 million monthly.
Federal Workforce and Services Disruption
The federal government shutdown has created uncertainty for federal employees, with Georgia housing nearly 111,000 federal employees and South Carolina about 25,000. Many of these employees may face furloughs or be required to work without pay during the shutdown. Essential personnel, including TSA agents and military members, will continue working without compensation, experiencing paycheck delays. Non-essential federal services may also halt during this period, affecting administrative functions at agencies and access to public spaces such as national parks.
Political Accountability and Future Concerns
Lawmakers are publicly blaming one another for the shutdown, with Republicans and Democrats trading accusations over responsibility for the breakdown in negotiations. In response to the adverse impact on federal workers, Georgia has created a resource page to assist those affected.
While some critical federal services protecting lives and property may remain operational, experts warn that a prolonged government shutdown could lead to significant economic disruptions and uncertainty regarding government roles and financial impacts. Historical analyses have shown that extended closures can negatively affect the economy over time, even though federal workers typically receive back pay once funding is restored.
As the nation awaits a resolution to this deadlock, the economic forecasts for Georgia and South Carolina highlight the widespread implications of the government shutdown on the livelihood of residents and the stability of local economies.
Deeper Dive: News & Info About This Topic
- WTOC: Economic Impacts of Government Shutdown
- Wikipedia: Government Shutdown
- WRDW: What Will Happen if Government Shuts Down
- Google Search: Government Shutdown Economic Impact
- WJCL: Impact of Government Shutdown on Georgia and South Carolina
- Encyclopedia Britannica: Government Shutdown
- WRDW: TSA Workers’ Concerns about Government Shutdown
- Google News: Government Shutdown News
Author: STAFF HERE AUGUSTA WRITER
AUGUSTA STAFF WRITER The AUGUSTA STAFF WRITER represents the experienced team at HEREAugusta.com, your go-to source for actionable local news and information in Augusta, Richmond County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Arts in the Heart Festival, Westobou Festival, and Masters Week. Our coverage extends to key organizations like the Augusta Metro Chamber of Commerce and Greater Augusta Arts Council, plus leading businesses in manufacturing and healthcare that power the local economy such as Textron Specialized Vehicles, Cardinal Health, and Nutrien. As part of the broader HERE network, including HEREAtlanta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
