The White House Warns: Prolonged Government Shutdown Threatens Economic Growth and Undermines Workforce
In a stark economic warning, an internal document from the White House obtained by "POLITICO" reveals that the ongoing government shutdown could push the American economy towards dire consequences.
According to a memo issued by the White House Council of Economic Advisers, the cost of the shutdown is steep and rising, with the GDP expected to lose nearly $15 billion per week. The council also predicts that a full month of shutdown will increase the number of unemployed by 43,000 people.
The anticipated effects are not limited to the overall output but extend directly to consumers' pockets. The memo indicates that a one-month government shutdown will lead to a reduction in consumer spending by $30 billion, with half of this contraction attributed to the direct impact on federal employees, while the other half results from the cascading effects on other economic sectors.
The report highlights the human suffering of 1.9 million federal civilian employees, 80% of whom are located in the Washington area, who are either furloughed or working without assurance of getting paid at this time.
On the other hand, the Trump administration shifted the political responsibility for the consequences of this shutdown. White House spokesperson Kush D'Saï said in a statement: "The very real economic consequences of a prolonged government shutdown rest entirely on the shoulders of Senate Democrats, who are holding the federal government, the economy, and the country hostage to provide illegal immigrants with free healthcare."
This document shows a contrast between the economic analysis highlighting the broad material losses and the political discourse focusing on assigning blame within the halls of Congress.
