Dividends and How government shutdown is upsetting the US economy

Just about everyone who works in the private sector thinks a government shut down tends to be of lesser importance than the work they do. In reality, all segments are important to the economy and in mid January Christopher Rugaber of Reuters wrote about how the US economy was suffering.

It is important to remember the people working and not getting paid; and the people not working and not getting paid because of the shutdown. It is better for all for government to work.

Delta Air Lines noted air traffic is down, both because the air traffic controllers are not getting paid and government personnel are not travelling.

The economy has 161 million workers, a million and half does not stop the economy but it does suggest a half percentage of growth is being lost. Hopefully when the people are paid they will spend a little. The White House believes annual growth is slowing by a tenth of a percentage point a week.

Much of the economic data the government collects and offers to the public and economists is not being collected.

IRS centers are closed which is means no money is being collected or given out.

Planning that needs a federal government approval is not being done and there will be a backlog.

Linking to dividend paying stocks, for large companies government and the rule of law matter greatly. Large institutions like to see governments running well for they always have many interactions with the government – both to keep competitors away and to keep their near monopolies.

There are more questions than answers, till the next time – to raising questions.

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