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Government Shutdown’s economic damage: US$1 billion a week
South China Morning Post ^ | 01/10/2019

Posted on 01/10/2019 7:13:53 PM PST by SeekAndFind

This story is published in a content partnership with POLITICO. It was originally reported by Victoria Guida on politico.com on January 9, 2019.

As US federal workers face the prospect of missed paycheques 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 paycheques don’t 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 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 US economy at about US$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 per cent growth.

The shutdown – in its 20th day Thursday – could also cost the US government more than a billion dollars in lost productivity for 350,000 workers who are forced to stay home.

The government will likely give back pay to furloughed workers in addition to those forced to perform their duties without pay during the partial shutdown.

The Obama administration estimated that the payroll cost alone for the 16-day government shutdown in October 2013 cost US$2.5 billion, not counting lost revenue from government entities like national parks that were unable to collect fees.

(Excerpt) Read more at scmp.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; Government; News/Current Events; US: California
KEYWORDS: california; china; dnctalkingpoint; dnctalkingpoints; economy; fakenews; fresno; mediawingofthednc; partisanmediashills; politico; pollutico; presstitutes; seiu; shutdown; smearmachine
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1 posted on 01/10/2019 7:13:53 PM PST by SeekAndFind
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To: SeekAndFind

The jobs number could be a lot weaker in January if the shutdown continues through next week, when the department conducts its payroll survey; most of the furloughed workers would be counted as unemployed.

Additionally, jobless claims of private contractors have probably already increased by as much as 15,000, according to Michael Feroli, chief US economist at JPMorgan.

That all means monthly jobs could decline in January for the first time since 2010.


2 posted on 01/10/2019 7:14:40 PM PST by SeekAndFind (look at Michigan, it will)
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To: SeekAndFind

Beth Ann Bovino, S&P Global Ratings chief US economist, estimated that real GDP growth would be lowered by a tenth of a per cent for every two weeks that the partial shutdown persists, which she said came out to about US$1.2 billion per week.


3 posted on 01/10/2019 7:15:11 PM PST by SeekAndFind (look at Michigan, it will)
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To: SeekAndFind

The Chinese concern trolls are hoping we’ll forget about that pesky wall too.


4 posted on 01/10/2019 7:16:54 PM PST by IronJack
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To: SeekAndFind

He’ll of a lot less than what Obama Care did per day, for years.


5 posted on 01/10/2019 7:17:19 PM PST by Deaf Smith (When a Texan takes his chances, chances will be taken that's fore sure)
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To: SeekAndFind

Good. I can’t stand all those on the Federal teat in Northern Virginia and Maryland. what a liberal cesspool they have created around D.C. Too hell with them all.


6 posted on 01/10/2019 7:17:24 PM PST by montag813
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To: SeekAndFind

Good. I can’t stand all those on the Federal teat in Northern Virginia and Maryland. what a liberal cesspool they have created around D.C. Too hell with them all.


7 posted on 01/10/2019 7:17:24 PM PST by montag813
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To: SeekAndFind

Never mind the hit to the porn industry losing 800,000 subscribers at work.


8 posted on 01/10/2019 7:17:51 PM PST by King Moonracer (Bad lighting and cheap fabric, that's how you sell clothing.)
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To: SeekAndFind

“...originally reported by Victoria Guida on politico.com on January 9, 2019...”

Anything on that crap fake news site id more than suspect for veracity.


9 posted on 01/10/2019 7:18:35 PM PST by carriage_hill (A society grows great when old men plant trees, in whose shade they know they will never sit.)
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To: SeekAndFind
Are we to believe that all but a few career government employees live pay check to pay check?


10 posted on 01/10/2019 7:19:05 PM PST by Baynative ("A man is not old until regrets take the place of dreams." - John Barrymore)
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To: SeekAndFind

FAKENEWS... Doesn’t take into account the savings to the American people from not having these government workers on the job.


11 posted on 01/10/2019 7:20:17 PM PST by Neidermeyer (Show me a peaceful Muslim and I will show you a heretic to the Koran.)
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To: montag813

Dems aren’t concerned about the Fed Employees without paychecks.....they’re concerned we’ll find out we don’t need the vast number of those.


12 posted on 01/10/2019 7:20:26 PM PST by caww
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To: SeekAndFind

Pocket change


13 posted on 01/10/2019 7:20:49 PM PST by DAC21
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To: SeekAndFind

This Chinese website actually cares about our economic loss? Hogwash and hogwash again concerning its figures. Did CBS or CNN “fact check” this assertion? Nonsense.


14 posted on 01/10/2019 7:22:42 PM PST by Fungi
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To: SeekAndFind

What’s the economic damage from the illegals?


15 posted on 01/10/2019 7:22:55 PM PST by Jim Noble (Freedom is the freedom to say that 2+2 = 4)
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To: SeekAndFind

Hey, that’s one wall every five days.

Thanks Schmuckie and sockpuppet.


16 posted on 01/10/2019 7:23:53 PM PST by TADSLOS (Confuse your doctor by putting on rubber gloves at the same time he does.)
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To: SeekAndFind

So a years damage is only 52 billion. A drop in the bucket. As a nation we have bigger fish to fry.


17 posted on 01/10/2019 7:23:53 PM PST by D Rider
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To: Baynative

State Capitols’ workers hardest hit: same ones who kept their boats, vacays, houses, insurance, college funds while the rest of us were devastated from 2008-2017.


18 posted on 01/10/2019 7:23:57 PM PST by txhurl (whoa)
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To: All
This story is published in a content partnership with POLITICO
At least the fake news comes with an up-front warning here.
19 posted on 01/10/2019 7:25:33 PM PST by Olog-hai ("No Republican, no matter how liberal, is going to woo a Democratic vote." -- Ronald Reagan, 1960)
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To: SeekAndFind

Democrats dancing in the halls over this.

Only thing thy are pissed about is the tax revenues they wont get from other peoples work.


20 posted on 01/10/2019 7:50:07 PM PST by Secret Agent Man (Gone Galt; Not Averse to Going Bronson.)
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