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View Full Version : Shutdown's damage to economy could exceed $5.7 billion cost of Trump's border wall?



Peter1469
01-22-2019, 07:00 AM
Shutdown's damage to economy could exceed $5.7 billion cost of Trump's border wall? (https://www.cbsnews.com/news/government-shutdowns-damage-to-u-s-economy-to-soon-exceed-5-7-billion-cost-of-trumps-border-wall/)

S&P Global's chief economist claims that direct and indirect costs from the government shutdown will exceed ~6B this week.


The government shutdown -- the longest in U.S. history -- is estimated in 31 days to have cost the American economy almost as much as the $5.7 billion President Trump has demanded for his proposed southern border wall.

Average weekly direct and indirect costs of the partial shutdown, which began Dec. 22, currently add up to $1.2 billion, according to Beth Ann Bovino, S&P Global's U.S. chief economist. Monday marked the start of the shutdown's fifth week, and the closure will have caused roughly $6 billion in damage to the economy if the government does not reopen by the end of the week, Bovino estimated in a recent research note (https://www.capitaliq.com/CIQDotNet/CreditResearch/RenderArticle.aspx?articleId=2151675&SctArtId=465282&from=CM&nsl_code=LIME&sourceObjectId=10836674&sourceRevId=1&fee_ind=N&exp_date=20290110-19:59:57).


And the average weekly cost of the shutdown is expected to grow as the damage to industries and consumers both widens and deepens. "The longer this shutdown drags on, the more collateral damage the economy will suffer," Bovino wrote.


Direct effects of the marathon shutdown include lost productivity from the hundreds of thousands of furloughed workers who haven't been paid (https://www.cbsnews.com/news/government-shutdown-hundreds-of-federal-workers-hit-by-shutdown-turn-to-gofundme-to-raise-money/) since the Dec. 22 closure. While the precise impact has not been calculated, the Bureau of Economic Analysis estimates that federal employees' lost hours during a 16-day shutdown back in October 2013 reduced fourth-quarter GDP by 0.3 percentage points.


The U.S. Chamber of Commerce, the nation's largest business association, last week urged Mr. Trump and Congress to end the shutdown. Consequences from the shutdown are "wide and growing," Neil L. Bradley, the group's chief policy officer, wrote in a letter (https://www.uschamber.com/sites/default/files/190108_shutdown_congress.pdf) Tuesday. He listed a wide range of affected programs, data and functions.

"Small businesses are unable to receive assistance from the Small Business Administration. Companies are delayed in their ability raise additional capital or complete the process of going public. The review (https://www.bloomberg.com/news/articles/2019-01-08/shutdown-sort-of-maybe-might-delay-m-a-deals-companies-warn) of mergers and acquisitions is suspended. Companies ranging from manufacturers to brewers are unable to receive the approvals required by law to sell their products," he wrote. "Travelers are delayed."


"Processing of imports is hindered, and tariff exclusion requests are unprocessed. Safety inspectors are sidelined, mortgage approvals (https://www.cbsnews.com/news/what-government-shutdown-means-for-your-mortgage/) are delayed, and research is halted. National Parks are closed (https://www.cbsnews.com/news/joshua-tree-national-park-temporarily-closing-to-address-damage-amid-shutdown/) and trash at the parks is not being collected. Grants, contracts, and payments for goods and services already provided are delayed," the letter continued. "Federal rulemakings are halted, and hundreds of thousands of federal employees and contractors go without pay."


According to data compiled by Bloomberg, the thousands of businesses with contracts tied to the federal government could lose a cumulative $200 million a day (https://www.bloomberg.com/news/articles/2019-01-07/shutdown-puts-200-million-a-day-in-federal-contracts-at-risk).

stjames1_53
01-22-2019, 07:08 AM
Pelosi should have given him the wall...........
I've read mixed reviews that some Repubs have moved against Trump and some Demos have joined his side. Still a stalemate............Nancy has yet to learn to negotiate in good faith

Peter1469
01-22-2019, 07:32 AM
Pelosi should have given him the wall...........
I've read mixed reviews that some Repubs have moved against Trump and some Demos have joined his side. Still a stalemate............Nancy has yet to learn to negotiate in good faith
It seems so.

MMC
01-22-2019, 08:07 AM
The Mainstream Media Warns America Will Be Facing An ... (http://www.shtfplan.com/headline-news/the-mainstream-media-warns-america-will-be-facing-an-economic-hellscape-if-the-government-shutdown-continues_01112019)www.shtfplan.com/headline-news/the-mainstream-media-warns-america...[/URL]
Once upon a time the mainstream media in the United States at least attempted to maintain a facade of objectivity, but those days are long gone. ... declared that the U.S. “would face an economic hellscape” if this shutdown stretches on for an extended period of time, ... Many of us would love to go back to the days before 9/11 when we …



[URL="https://economictimes.indiatimes.com/news/international/how-will-us-shutdown-affect-global-economy/articleshow/23377180.cms"]How will US shutdown affect global economy? - The Economic ... (https://www.bing.com/search?q=Economist+in+order+for+shutdown+to+affect +US+economy+it+would+have+to+go+on+for+long+period +of+time+2019&src=IE11TR&pc=EUPP_HRTS&first=25&FORM=PERE1#)economictimes.indiatimes.com › News (https://economictimes.indiatimes.com/news) › International (https://economictimes.indiatimes.com/news/international)
The global economy will probably withstand the US government’s first partial shutdown in 17 years even as financial market volatility rises in coming days, analysts and policy makers say. A one-week shutdown of some government services should have a less than 0.1% impact on US gross domestic product, said Tomo Kinoshita, chief economist at Nomura Holdings in Tokyo.



Maybe after 6 months it might affect 1% of GDP. Might.....not will.

Safety
01-22-2019, 08:10 AM
Pelosi should have given him the wall...........
I've read mixed reviews that some Repubs have moved against Trump and some Demos have joined his side. Still a stalemate............Nancy has yet to learn to negotiate in good faith

No, the US does not negotiate with domestic hostage taking terrorists.

MMC
01-22-2019, 08:13 AM
It seems so.

Remember now the Demos and their cult following always accuse others of what they do. Like taking Hostages.

The Demos got that after many on the Right called them out for taking hostages with Public School Teachers and their strikes.

donttread
01-22-2019, 08:20 AM
Shutdown's damage to economy could exceed $5.7 billion cost of Trump's border wall? (https://www.cbsnews.com/news/government-shutdowns-damage-to-u-s-economy-to-soon-exceed-5-7-billion-cost-of-trumps-border-wall/)

S&P Global's chief economist claims that direct and indirect costs from the government shutdown will exceed ~6B this week.


So as I thought the government itself has become one of the driving forces of GDP. Isn't that kind of like Socialism? Except without the benefits to the poor?

MMC
01-22-2019, 08:27 AM
So as I thought the government itself has become one of the driving forces of GDP. Isn't that kind of like Socialism? Except without the benefits to the poor?

Uhm yep.....that is if you believe the Lame Stream Media/Demo propaganda machine

Peter1469
01-22-2019, 08:42 AM
So as I thought the government itself has become one of the driving forces of GDP. Isn't that kind of like Socialism? Except without the benefits to the poor?
Socialism is the public (read government) ownership of capital.

donttread
01-22-2019, 08:45 AM
Uhm yep.....that is if you believe the Lame Stream Media/Demo propaganda machine


What else would one believe if a week of government "shutdown" measurably effects GDP?

MMC
01-22-2019, 08:55 AM
What else would one believe if a week of government "shutdown" measurably effects GDP?

With the Lame Stream pimping out that leftist uhm mantra. You know the leftness will take it as the gospel. You know how 95% of them can't think for themselves.

MisterVeritis
01-22-2019, 11:41 AM
No, the US does not negotiate with domestic hostage taking terrorists.
It appears that President Trump is willing to negotiate with Pelosi and Schumer, the domestic hostage-taking terrorists.

Safety
01-22-2019, 12:23 PM
It appears that President Trump is willing to negotiate with Pelosi and Schumer, the domestic hostage-taking terrorists.

I wish you were smarter.

ripmeister
01-22-2019, 01:28 PM
Pelosi should have given him the wall...........
I've read mixed reviews that some Repubs have moved against Trump and some Demos have joined his side. Still a stalemate............Nancy has yet to learn to negotiate in good faith
Negotiate in good
faith? Now that's funny.

Private Pickle
01-22-2019, 01:29 PM
A mere fraction of the cost of illegal immigration...

Private Pickle
01-22-2019, 01:30 PM
Negotiate in good
faith? Now that's funny.

Right? I mean saying an offer to negotiate is a "non-starter" is really funny... Meanwhile eat it 800,000 employees of the Federal Government. In my opinion they should have gotten jobs with real employers in the first place.

ripmeister
01-22-2019, 01:33 PM
It appears that President Trump is willing to negotiate with Pelosi and Schumer, the domestic hostage-taking terrorists.
Trump cracks me up. He takes something away, DACA for example, and then uses that as a negotiation chit acting like he's giving you something in exchange for what he wants. What a
master negotiator.