Shutdown's economic damage: $1 billion a week
Source: Politico
The mounting toll is adding new risks to the Trump administrations economic hopes for 2019.
By VICTORIA GUIDA 01/09/2019 06:33 PM EST
As federal workers face the prospect of missed paychecks during the partial government shutdown, their financial reality is rippling 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 dont appear this week. Private-sector contractors and other workers tied to the government are already seeing damage from lost business.
And a hit to the nations financial standing is on the horizon with a warning from Fitch Ratings on Wednesday about downgrading the governments credit rating if the shutdown persists.
Estimates from President Donald Trumps chief economist peg the cost to the overall U.S. economy at about $1.2 billion for each week the shutdown persists. While thats just 0.05 percentage points off the GDP growth rate, it could be among the factors complicating the administrations aspiration of reaching sustained 3 percent growth.
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Read more: https://www.politico.com/story/2019/01/09/shutdowns-economic-damage-1-billion-a-week-1071609
BumRushDaShow
(128,846 posts)They issued the same threat in 2013 during that shutdown - https://www.reuters.com/article/us-usa-fitch/fitch-warns-it-may-cut-u-s-credit-rating-from-aaa-idUSBRE99E12H20131016
That came a day before the shutdown was ended.
nwduke
(350 posts)Vlad is also pulling the strings on the lame GOP, especially Grahamy!
ffr
(22,669 posts)That's a positive?