Page Says Government Shutdown Might Impact Confidence

The video discusses the impact of government shutdowns on the economy, focusing on historical examples like the 1995-96 shutdowns and their economic effects. It compares political responses under different presidents, such as Bill Clinton and Donald Trump, and examines the current shutdown's potential economic impact, including unemployment and market effects. The discussion also touches on the debt ceiling and its implications for future economic stability.

What was the estimated cost of the 1995-96 government shutdowns when adjusted for inflation?

• $4.0 billion

• $1.4 billion

• $2.3 billion

• $3.5 billion

How did Bill Clinton's governance change after the 1995-96 shutdown?

• He moved to the center

• He moved to the left

• He resigned from office

• He became more conservative

What is a potential consequence of a prolonged government shutdown on unemployment rates?

• Decrease by 0.1%

• Decrease by 0.5%

• Remain unchanged

• Increase by 0.2% to 0.3%

What is the Gephardt rule related to?

• Automatic budget approval

• Automatic debt ceiling raise

• Automatic tax cuts

• Automatic government shutdown

What is the potential impact of a prolonged shutdown on economic confidence?

• It might decrease confidence

• It will boost confidence

• It will stabilize confidence

• It will have no impact

What is one of the factors that might make debt ceiling negotiations harder?

• Decreased government spending

• Partisan politics

• Increased bipartisan cooperation

• Economic growth

What is a suggested strategy for managing financial risks during a government shutdown?

• Invest heavily in foreign markets

• Sell all government bonds

• Maintain a neutral balance between risk and safe assets

• Increase investment in risk assets