DAY 27: Trump Shutdown Costs Workers $5,000 In Wages, Pushes Economy Closer To A Recession
January 17, 2019
It’s day 27 of the Trump Shutdown, and hundreds of thousands of workers have already lost thousands of dollars in wages. Meanwhile, the economic costs of Trump’s government shutdown continue to get worse.
The Trump Shutdown has already cost hundreds of thousands of workers more than $5,ooo in wages on average.
New York Times: “The 800,000 federal workers who haven’t been paid during the government shutdown have each missed more than $5,000 in wages on average so far, according to a New York Times analysis. Combined, that’s more than $200 million per workday.”
The Trump Shutdown is pushing the economy closer to a recession.
Politico: “The partial government shutdown was supposed to be a brief non-event for the economy. Now it’s starting to look like a serious crisis that could nudge the U.S. toward recession and threaten President Donald Trump’s economic message during his reelection campaign.”
The Trump Shutdown is hurting the economy, and warnings from economists are only getting louder.
Deutsche Bank chief international economist: “This is not just some linear event. It can get exponentially worse in very unpredictable ways, from government workers quitting, to strikes, to companies not going public. It’s no longer just a political sideshow, it’s a real recession risk.”
Bank of America Merrill Lynch: “Bank of America Merrill Lynch on Wednesday reiterated its concern about the economic cost of the shutdown. … ‘There is a sensitivity in the markets to signs of dysfunction in Washington.’”
JPMorgan CEO: “JPMorgan CEO Jamie Dimon said Tuesday that the shutdown was a serious problem for the US economy and cited research that found US GDP growth could go to zero if the shutdown continued.”
Trump’s top economic adviser said that the economic damage from the shutdown could be a “little bit worse” than predicted. In reality, the Trump administration estimated that it would cost TWICE as much.
CNN: “WH economic adviser says damage to economy from shutdown is a ‘little bit worse’ than predicted”
CNBC: “The Trump administration now estimates that the cost of the government shutdown will be twice as steep as originally forecast. The original estimate that the partial shutdown would subtract 0.1 percentage point from growth every two weeks has now been doubled to a 0.1 percentage point subtraction every week, according to an official who asked not to be named.”