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Government Shutdowns Leave a Lingering Paycheck Hangover, Experts Warn
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Published in Politics and Government on Saturday, November 22nd 2025 at 11:34 GMT by fox17online- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
When the Government Shuts Down, the Hangover May Last Longer Than the Closure
A recent piece on Fox 17 Online—titled “This government shutdown might outlast its paycheck hangover”—dives deep into the mechanics, politics, and economics of a federal shutdown, and the way its aftereffects can linger long after Congress has finally passed a funding bill. By tracing the history of past shutdowns, quoting lawmakers and economists, and linking to external analyses, the article gives readers a comprehensive view of what happens when the U.S. federal government runs out of money to spend, and why the “paycheck hangover” can keep the economy groggy for months.
1. The Basic Mechanics of a Shutdown
The article opens with a clear explanation of how a shutdown is triggered: when Congress fails to approve a budget or a “continuing resolution” (CR) that keeps the government operating at the previous year’s levels. In that case, most federal agencies shut down temporarily, and non-essential workers are furloughed. Essential services—air traffic control, emergency responders, the military—continue, but the administrative machinery stalls.
Fox 17’s piece points out that the “paycheck hangover” stems from a two‑phase fallout. First, federal employees do not receive their salaries during the shutdown. Second, the delayed or suspended payments cascade into a larger economic shock as contractors, vendors, and local businesses that depend on federal payrolls suffer a liquidity crunch. The article argues that while the shutdown itself might last a few weeks, the ripple effect—often measured in weeks or even months—can outlast the closure.
2. Historical Context and the Cost of Stalling
To illustrate the stakes, the article pulls data from the Congressional Budget Office (CBO) and the Government Accountability Office (GAO), which have quantified the costs of shutdowns in the past. The 2013 shutdown (35 days) is cited as the longest in U.S. history, costing roughly $11.8 billion in direct economic damage and a $5.6 billion hit to the federal payroll. The 2018–2019 shutdown, lasting 35 days as well, cost an estimated $3.5 billion in federal costs alone, not including the broader economic slowdown.
Fox 17 references a CBO study that estimates a 20‑day shutdown can shrink GDP by 0.02 percent, with the effect lingering for up to a year. The article explains that these figures don’t fully capture indirect costs: businesses losing access to federal contracts, consumers cutting back spending, and small towns losing critical services. It also links to a GAO analysis that shows how federal spending disruptions can stall public infrastructure projects, delaying jobs and tax revenue for years.
3. The “Paycheck Hangover” Explained
A key contribution of the article is its framing of the shutdown’s aftershock as a “paycheck hangover.” The term is borrowed from economists who note that once the furloughs end, the surge in federal payrolls can actually depress consumer confidence and spending in the short term. Workers who had already planned budgets or had to borrow to cover living expenses are suddenly forced to re‑budget, leading to a dip in discretionary spending.
The article quotes Dr. Michelle Harris, a senior economist at the Brookings Institution, who explained that the “paycheck hangover” can dampen the stimulus that normally follows a payroll surge. “When people’re forced to delay or cancel big-ticket purchases—like homes or cars—there’s a lag in the multiplier effect,” Harris says. The piece emphasizes that the hangover can be especially pronounced for communities that depend heavily on federal contracts—think defense contractors in Texas or veterans’ hospitals in California.
4. Political Dynamics Behind the Hangover
The article spends a large section on the partisan politics that keep the budget stalled. It tracks the recent floor battle in the Senate, where the Republican majority was unwilling to pass a spending bill without stricter limits on discretionary spending, while Democrats demanded more funding for social programs. Fox 17’s piece also links to a recent Senate hearing transcript where Senator John Cornyn (R‑TX) criticized the “unwillingness” of the Democrats to engage in “meaningful negotiations.” Meanwhile, House Minority Leader Kevin McCarthy (R‑CA) has called for a “clean, balanced” budget that cuts entitlement programs.
The author uses these snippets to illustrate how gridlock not only prolongs the shutdown but also magnifies the hangover. When a shutdown lasts longer, more workers remain unpaid, creating a larger backlog that takes weeks—sometimes months—to resolve. The article also points out that once the government resumes operations, the backlog can overwhelm the payroll system, delaying the processing of federal wages and extending the economic shock.
5. Possible Solutions and the Road Ahead
Fox 17 doesn’t just warn; it also offers potential remedies. The article references a bipartisan proposal in the House that would allow the government to pass a “temporary operating budget” while the larger funding bill is negotiated. Such a measure, the piece explains, could cap the shutdown at 30 days and reduce the size of the paycheck hangover. It also highlights the possibility of a “fiscal roadmap” that would outline a multi‑year path toward balanced federal spending, thereby removing the incentive for Congress to stall.
The article concludes with a cautionary note that a protracted shutdown can erode public trust in the federal government and destabilize local economies. It urges readers that, while the “paycheck hangover” may last longer than the shutdown itself, the political will to avoid such an outcome is still within reach if both parties find common ground.
6. Bottom Line
In sum, Fox 17’s piece does more than report a current budget standoff; it contextualizes the shutdown within a broader narrative of federal fiscal paralysis. By highlighting the historical costs, detailing the mechanics of the paycheck hangover, and mapping the partisan roadblocks, the article underscores how the economic fallout can outlast the government’s temporary closure. For anyone interested in how policy decisions ripple through the economy—and how a single week of furloughs can set off months of slow‑motion recovery—the article offers a clear, data‑driven, and politically balanced summary of the stakes at hand.
Read the Full fox17online Article at:
[ https://www.fox17online.com/politics/this-government-shutdown-might-outlast-its-paycheck-hangover ]
