When the current federal government shutdown began a month ago, the media warned of financial market mayhem due to decreased government spending. Things could still go south, but so far we’ve actually seen the opposite: The stock market has continued to break records. If the federal government were truly central to day-to-day economic life, this should have sent investors running — but it didn’t.
Investors delivered a resounding verdict on non-essential government operations: They are of little importance to the real economy.
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