While government shutdowns impact the economy directly and indirectly, the magnitude of the impact is determined by the length and scope of the shutdown. Some operations can continue in a “partial shutdown” scenario, and thus impact the economy differently. During a shutdown, the government temporarily pauses nonessential operations and furloughs nonessential federal workers and halts appropriations of what is called discretionary spending, which is about 27% of total federal expenditures. Meanwhile, mandatory spending like Social Security and Medicare will continue, as they do not require annual congressional ... (full story)