Shutdown effects national and local economy

By Beau Ebenezer

October 17, 2013 Updated Oct 18, 2013 at 9:14 AM CDT

PEORIA, Ill. -- The United States' economy is looking to bounce back following the 16-day government shutdown.

With billions of dollars lost, U.S. Congressional members along with economists across the nation, are examining how much the shutdown really affected the national economy.

It is estimated the shutdown cost the U.S. economy a total of $24 billion.

Included in that estimate is about $3.1 billion in lost government services.

Millions were also lost in travel spending, national parks and federal and contractor wages.

However a national senior economist with PNC Bank said the shutdown affected central Illinois residents' "psyche" more than anything else.

"There isn't a lot of federal government employment here and government contractors here, but it hurt confidence," said PNC Economist Gus Faucher. "People were concerned about what was going to happen. People were concerned about whether the U.S. was going to breach the debt limit. Consumers were a little more cautious and businesses held back on investment."

Meanwhile, a former U.S. Deputy Secretary of the Treasury made a stop in Peoria to share his thoughts on where the economy stands right now.

Robert Kimmit served in the Treasury during the economic crisis five years ago.

He said the economy is on the right track, despite the set-back but needs to reach new trade agreements in order to create more jobs.

"If we conclude this new Trans-Atlantic trade and investment partnership with Europe, that will add 700,000 new jobs in the United States and over 30,000 here in Illinois," Kimmit said.

As for members of Congress, public opinion polls show approval ratings have dropped significantly.

Approval has dropped especially for Republicans during the federal government shutdown.

17th District Democratic Congresswoman Cheri Bustos said to avoid a future crisis and restore public trust, bipartisanship and collaboration must now become the norm for Congress.

"We have to start doing that not just when there's something terrible right around the corner but everyday," Bustos said. "We have to build those relationships. We have to talk and we have to introduce legislation that's going to be helpful."

In a statement 18th District House Republican Aaron Schock stated "it is my hope Congress and the White House will begin to seriously address issues like tax reform, finalizing a budget and reforming entitlement programs.”

Both Bustos and Schock voted to reopen the federal government.

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