House Speaker Mike Johnson speaks at the US Capitol on September 16, 2025. A government shutdown would add more chaos and uncertainty at a time when there is already plenty of both. Kent Nishimura/Getty Images New York —

Government shutdowns can be political earthquakes that paralyze Washington, DC. But for the economy, shutdowns are often barely a blip.

Whatever economic damage occurs during that time tends to be limited and quickly fixed. Even the last government shutdown – the record-long 35-day shutdown in 2018-2019 – had few long-lasting impacts on the US economy and financial markets.

That could very well be the case again this time around, especially if the looming shutdown proves to be brief. Yet there are reasons this episode could be different – and not in a goo

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