The Cost Of The Gov’t Shutdown Will Soon Equate To Cost Of Trump’s Border Wall

Dinkytown/CC BY 3.0

In two weeks, the government shutdown will have cost the economy as much as President Trump wants for his border wall.

If the government shutdown lasts two more weeks, the cost to the economy will be the amount Trump has asked for his border wall, according to Vox.

On Friday, the U.S. economy lost $3.6 billion due to the shutdown. In two weeks, the U.S. economy will have lost $5.7 billion, which is the cost of the border wall.

The impacts to the economy are both direct and indirect. Government contractors are not getting paid, thus they have less money to spend. Contractors may have to begin laying off their own workers if the shutdown goes on long enough. Although federal workers are paid once the shutdown ends, contract workers are not.

Because employees at the Securities and Exchange Commission are furloughed, there is a slowdown in initial public offerings, so companies that were expected to go public at the beginning of the year are not.

CEO of Pantheon Macroeconomics, Ian Shepherdson, warns “if the shutdown were to last the whole quarter, we would look for an outright decline in GDP.”

Comments