President Donald Trump was willing to shut down the federal government for several weeks over funding for his border wall project — money he has yet to receive — but the record-long shutdown ended up costing the U.S. economy even more than his $5.7 billion demand for wall funding.
ABC News reported on Saturday that an analysis by financial rating agency Standard & Poor’s revealed the partial government shutdown cost the economy at least $6 billion.
In a report issued on Friday, titled, "U.S. Government Shutdown Ends, But At What Cost?" the rating agency's Global Economics arm said the overall cost to the economy — for the longest government shutdown in U.S. history — is "likely worse than what we had previously expected."
Though the agency initially estimated the economy would lost about $1.2 billion each week the shutdown continued, it determined that “weekly costs likely widened beyond the average weekly cost of $1.2 billion”.
"Here, both direct costs, on lost productivity from furloughed government workers, and indirect costs, from lost economic activity to outside businesses because of the shutdown, amplified with each week the government remained closed," the statement continued.
"We had expected that other indirect costs were likely just delayed, with businesses recouping some of those losses once the government reopens its doors. But, with a five-week closure, we suspect that more of those economic activities indirectly tied to the government may have been outright canceled," the statement said.
Standard & Poor’s also warned that economic trouble might not be over, despite the shutdown having concluded:
"Although this funding battle has ended, the next one starts in a few weeks, which may reduce growth expectations if businesses and financial markets begin to expect that Congress and the president will repeat the experience again and again," the statement said.