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Government Shutdown May Cost More Than Mexico-U.S. Border Wall

Government Shutdown May Cost More Than Mexico-U.S. Border WallThe partial shutdown in the U.S. is affecting the economy as a whole.

It is said that economic growth is affected for each passing day of the government partial shutdown.

Democrats are not willing to spend the $5.7 billion of taxpayer money towards building the border wall with Mexico that President Trump demands.

The shutdown that began on 22 December has already cost the economy $3.6 billion by January 11. It is almost $1.2 billion per week, according to estimates from S&P financial analysis firm.

It has been 26 days and the shutdown still continues. Its impact on the economy is tremendous, causing more damage than that was estimated. About 800,000 employees have been forced to go on leave or work without pay.

After almost a month, the revenues have come down drastically. The Delta Airlines has lost almost $25 million as bookings have dropped.

The Council of Economic Advisers from the White House, Kevin Hassett says the loss is about a “tenth of a percent for a week”. This has been revised from 0.1 percent for every two weeks, as the damage caused is heavier.

If the partial shutdown continues, the spillover effect may be bigger, says Hassett.

Federal employees are having their paychecks delayed. A few businessmen are providing low-cost finance programs to such employees. Auto dealers are offering their customers to pay later for the services rendered in Washington DC.

It is a political crisis apart from a partial government shutdown. The division between the White House and the Democrats will have a dire consequence on the economy, says Bernard Baumohl, the chief economist at the Economic Outlook Group.

Since 1976 there have been 21 government shutdowns, but none have affected the economy as much as the current one. The White House has also agreed on the government shutdown, saying that effects are much worse than was anticipated.

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