Since it began on October 1, the effects of the U.S. government’s shutdown have been far-reaching. The federal courts, federally gathered economic data, and veterans’ services among many other federally funded essentials have all been affected.
Two Georgetown McDonough professors weighed-in on the shutdown’s potential effect on MBA students and graduates. Associate Professor of Finance, James Angel, offered a very direct assertion about the economic implications of the shutdown. Angel explained that the shutdown simply creates a lack of confidence in the U.S. government that makes the economy appear more volatile and uncertain. Any prospective or current business professional needs an economy that ideally is and certainly appears to be reliable.
Senior Policy Scholar at McDonough’s Center for Business and Public Policy, Robert Shapiro, expressed frustration with party politics’ negative effect on the economy. Shapiro argued that the economy has already been harmed by Tea Party-driven demands for budget cuts during the sequester earlier this year. Those cuts, fueled by similar coercion tactics, have already slowed down economic growth. Thus, MBA students and graduates alike equate the shutdown with economic stagnation.
The long-term effects of the shutdown have yet to be seen, but among the MBA population, it is already a highly disruptive concern. Although the vast majority of MBA holders haven’t yet felt the consequences of the shutdown, they have the financial expertise and foresight to understand its pressing significance. According to these McDonough professors, business students as a group will be among the most grateful if a resolution is reached.