The government shutdown that began on October 1 is on its 36th day, making it the longest in history. In a new insight, Director of Fiscal Policy Jordan Haring explains how the economic impact of a prolonged government shutdown is far-reaching, affecting everything from gross domestic product growth to small business revenues.

Key points:

• Fourth-quarter real gross domestic product has dropped $18 billion below what it would have been without the shutdown and could fall further if the shutdown persists.
• Missed paychecks for excepted and furloughed federal employees have already exceeded $9 billion and could reach $23 billion if the shutdown lasts for two months.
• Federal spending has been temporarily reduced by $33 billion and could be reduced by $74 billion if the shutdown lasts for eight weeks.

Read the analysis.