The Atlanta Journal-Constitution asked Terry professor of economics David Agrawal for his views on the financial effects of the recent government shutdown.
“The government deficit is about 4 percent of GDP (gross domestic product) and if we stop spending money, that is likely to make the economy contract. It could put us into recession. That’s 4 percent of GDP going immediately to zero.
“You’ll get spikes in unemployment. You’ll get declines in income.”
The economy is already weaker than during a typical recovery, he said. “The contraction would definitely have repercussions for the everyday people around Georgia.
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