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Government Shutdown Does Not Save Money

By John B. Wood •  October 8, 2013
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There is a piece of the government shutdown narrative that I think many people have missed over the last seven days.
A government shutdown does not save money; it actually costs MORE money than if the government were to remain open for business.  This NYT opinion piece makes the point well:  http://www.nytimes.com/2013/10/03/opinion/the-cost-of-the-shutdown.html
Furthermore, when the government ‘shuts down’ it doesn’t really shut down.  Only about 20% of federal employees have been furloughed, and they are likely to receive back-pay.   So, we end up paying for the work that we aren’t letting them do.
Unfortunately, much of the dialogue has been about managing the optics of the shutdown – for the President, House and Senate – and not about the reality that this shutdown is not only an inconvenience and a distraction, but it is adding to our nation’s debt crisis.
Would like to know what you think.  Leave a comment here, or on Twitter.
John B. Wood

John B. Wood is the chairman and CEO of Telos Corporation. Follow him on Twitter: @john_b_wood See full bio...

Telos CEO John Wood blogs about business, education, and the values that guide us.

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