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Thu Jan 10, 2019, 03:56 AM

Shutdown's economic damage: $1 billion a week

Source: Politico



The mounting toll is adding new risks to the Trump administrationís 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 donít 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 nationís financial standing is on the horizon with a warning from Fitch Ratings on Wednesday about downgrading the governmentís credit rating if the shutdown persists.

Estimates from President Donald Trumpís chief economist peg the cost to the overall U.S. economy at about $1.2 billion for each week the shutdown persists. While thatís just 0.05 percentage points off the GDP growth rate, it could be among the factors complicating the administrationís 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

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Reply Shutdown's economic damage: $1 billion a week (Original post)
riversedge Jan 10 OP
BumRushDaShow Jan 10 #1
nwduke Jan 10 #2
ffr Jan 10 #3

Response to riversedge (Original post)

Thu Jan 10, 2019, 06:17 AM

1. "warning from Fitch Ratings on Wednesday about downgrading the government's credit rating"

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.

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Response to riversedge (Original post)

Thu Jan 10, 2019, 09:36 AM

2. Putin's Puppet!

Vlad is also pulling the strings on the lame GOP, especially Grahamy!

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Response to riversedge (Original post)

Thu Jan 10, 2019, 11:57 AM

3. Now we know how conservatives would run gov't like a business, run $1.2B/wk losses

That's a positive?

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