As the shutdown has begun in America, President Donald Trump’s economic advisers have warned that a prolonged government shutdown could have serious economic consequences. The White House memo states that if the shutdown continues for each week, the US GDP could lose about $15 billion.
If the shutdown drags on for even a month, 43,000 more people will have to lose their jobs. This does not include the loss of 1.9 million federal government employees who are either working without pay or on leave. 80 percent of these employees live in Washington.
White House aides say the document will be sent to Republican lawmakers so that they can determine their political strategy for the shutdown. Congress is currently divided over funding for Obamacare health insurance subsidies. The Trump administration claims the subsidies will go to illegal immigrants.
“The real economic consequences of the government shutdown lie with Senate Democrats, who are holding the federal government, the economy, and the nation hostage to providing free health care to illegal immigrants,” White House spokeswoman Kush Desai said in a statement.
Republican leaders at all levels are currently trying to unite and blame Democrats for the shutdown. Recent polls show that the public currently blames Republican lawmakers, but significantly larger numbers hold both parties responsible.
The controversy comes at a time when questions are being raised about the economic impact of Trump’s tariff policies. Data released Wednesday by payroll company ADP showed that 32,000 private-sector jobs were lost in the United States in September. A four-page report from the Council of Economic Advisers said that if the shutdown continues for a month, consumer spending would fall by $30 billion. Half of this impact would fall directly on federal employees, with the rest spilling over into other sectors.
