The Intelligence from The Economist Shut happens: US federal funding stops
11 snips
Oct 1, 2025 
John Prideaux, a contributor focused on US politics, shares insights on the recent government shutdown, highlighting its effects on federal workers and economic markets. He discusses Trump's threat of 'irreversible cuts' and the limited timeframe for resolution. Meanwhile, Alex Hearn, The Economist's AI expert, reveals alarming security flaws in generative AI, including the risks of prompt-injection attacks and data mismanagement. They also offer advice on preventing workplace conflicts, emphasizing the importance of informal resolutions.
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Shutdowns Hit Hidden Government Functions
- A US shutdown halts many visible services and critical back-office functions like the Bureau of Labor Statistics and embassy operations.
- The hidden impacts on data flow and diplomacy can be substantial even if markets stay calm.
Partisanship Makes Shutdowns Stickier
- Government shutdowns once quickly punished the party in power, but heightened partisanship has weakened that feedback loop.
- That change makes shutdowns longer and politically tolerable, raising the risk of protracted closures.
Negotiation Leverage Can End Shutdowns
- Democrats demand rollbacks of healthcare cuts to reopen government, creating a realistic path to compromise.
- Watch Senate leadership incentives: demonstrating toughness can help secure better terms before reopening.