REPORT: Shutdown’s economic damage: $1 billion a week
As the most reliable and balanced news aggregation service on the internet, DML News offers the following information published by Politico:
As federal workers face the prospect of missed paychecks during the partial government shutdown, their financial reality is rippling out into the broader economy.
The roughly 800,000 government employees who are either furloughed or working without pay will be forced to start slashing their consumer spending when paychecks don’t appear this week. Private-sector contractors and other workers tied to the government are already seeing damage from lost business.
The article goes on to state the following:
And a hit to the nation’s financial standing is on the horizon with a warning from Fitch Ratings on Wednesday about downgrading the government’s credit rating if the shutdown persists.
Estimates from President Donald Trump’s chief economist peg the cost to the overall U.S. economy at about $1.2 billion for each week the shutdown persists. While that’s just 0.05 percentage points off the GDP growth rate, it could be among the factors complicating the administration’s aspiration of reaching sustained 3 percent growth.
The government shutdown could cost the U.S. government more than a billion dollars in lost productivity for 350,000 workers who are forced to stay home https://t.co/k8uMmztOIq
— POLITICO (@politico) January 9, 2019
— ABC News (@ABC) January 4, 2019
“Estimates from President Donald Trump’s chief economist peg the cost to the overall U.S. economy at about $1.2 billion for each week the shutdown persists.”–Victoria Guida, @politico
— Jane Sooby (@j_sooby) January 9, 2019
Fitch Ratings warned it could re-evaluate the U.S.’s triple-A credit rating if the government shutdown continues until March 1st and leads to a debt ceiling breach. https://t.co/jLwDQSwjrO
— Axios (@axios) January 9, 2019
CNN: U.S. potentially risks losing its triple-A credit rating if shutdown continues long enough, Fitch Ratings said. The head of sovereign ratings said if the shutdown continues to March 1 and complicates debt ceiling, “We may need to start thinking about the policy framework.”
— Manu Raju (@mkraju) January 9, 2019
— CNN Newsroom (@CNNnewsroom) January 9, 2019
Fitch Ratings: “The main implication for our U.S. sovereign credit view will depend on whether we feel this shutdown foreshadows a more pronounced destabilization of fiscal policymaking, including brinkmanship over the debt limit.” https://t.co/BFcc1UXUfi
— David Gura (@davidgura) January 9, 2019
The political dysfunction underlying the shutdown led to a warning from Fitch Ratings about potential damage to the U.S. government’s triple-A credit rating. https://t.co/uha7VbEliQ
— Victoria Guida (@vtg2) January 9, 2019
The longer the shutdown lasts, the worse its impact. https://t.co/k5IWp70Tes
— Fast Co. Ideas (@FastCoIdeas) January 8, 2019
This shutdown continues to negatively impact countless hardworking Americans. I introduced the Government Shutdown Impact Report of 2019, requiring the Congressional Budget Office to submit daily reports on the economic impact & cost of a shutdown. #AZ01 https://t.co/UOInx6dTR5
— Rep. Tom O’Halleran (@RepOHalleran) January 8, 2019
To get more information about this article, please visit Politico. To weigh in, leave a comment below.
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