Yesterday the White House revised upward their estimate of the shutdown’s negative impact on the economy. This revision is critical because it is probably not the last upward revision. A comprehensive and accurate assessment of effects would have to consider the impact on private sector contractors working for the federal government as well as government employees. The ripple down impact on these workers and those who depend on workers’ salaries would also have to be included. In addition, the cost of late work and delayed repairs caused by the shutdown must be counted. In 2013 a 16 day government shutdown cost $24 billion and caused the GDP to lose .25 percent.
Given Trump’s penchant for making news to distract from his personal legal problems, he may delay resolving the shutdown until February 7. On that date, his long-time former private attorney, Michael Cohen is supposed to be giving dynamite testimony about Trump. And Trump may want to re-open the government to distract from that testimony.
| https://www.nytimes.com/2019/01/15/us/politics/government-shutdown-economy.html | https://www.usatoday.com/story/money/2019/01/15/jamie-dimon-says-shutdown-could-reduce-economic-growth-zero/2578510002/  |