x
Breaking News
More () »

What we learned from the ‘95-‘96 government shutdown

That three week shutdown cost more than $2 billion of today's dollars.

WASHINGTON, D.C., USA — Whenever this current government shutdown ends, it will take months to calculate how much damage was really done to the economy and the toll it took on many families. 

However, a look back at the second longest government shutdown may provide some clues. 

That shutdown lasted 21 days, from December 15, 1995 to January 5, 1996.

RELATED: Coast Guard becomes first Armed Force in history to go without pay during shutdown

President Bill Clinton and House Speaker Newt Gingrich couldn't agree on a budget plan. 

Much like today, museums were shut down, a decision had to be made about lighting the National Christmas Tree and hundreds of thousands of workers were told to stay home. 

That three week shutdown cost more than $2 billion of today's dollars.

The government had to pay late fees on some its bills, backpay to employees and overtime to catch up on all the missed work. 

RELATED: CEO gives up salary to pay workers during government shutdown

It also cost taxpayers to close then re-open parts of the government. 

In Washington, businesses with $4 billion worth of federal contracts at the time had to lay off workers. 

Therapists reported more calls from government employees dealing with anxiety and depression.

Several reports analyzing the impact of government shutdowns cautioned against using this tactic to negotiate and cited the national security risk and tens of thousands of fewer jobs created in the private sector.

Before You Leave, Check This Out