Posted on 01/10/2019 7:13:53 PM PST by SeekAndFind
This story is published in a content partnership with POLITICO. It was originally reported by Victoria Guida on politico.com on January 9, 2019.
As US federal workers face the prospect of missed paycheques during the partial government shutdown, their financial reality is rippling out into the broader economy.
The roughly 800,000 government employees who are either furloughed or working without pay will be forced to start slashing their consumer spending when paycheques dont appear this week.
Private-sector contractors and other workers tied to the government are already seeing damage from lost business.
And a hit to the nations financial standing is on the horizon with a warning from Fitch Ratings on Wednesday about downgrading the governments credit rating if the shutdown persists.
Estimates from President Donald Trumps chief economist peg the cost to the overall US economy at about US$1.2 billion for each week the shutdown persists.
While thats just 0.05 percentage points off the GDP growth rate, it could be among the factors complicating the administrations aspiration of reaching sustained 3 per cent growth.
The shutdown in its 20th day Thursday could also cost the US government more than a billion dollars in lost productivity for 350,000 workers who are forced to stay home.
The government will likely give back pay to furloughed workers in addition to those forced to perform their duties without pay during the partial shutdown.
The Obama administration estimated that the payroll cost alone for the 16-day government shutdown in October 2013 cost US$2.5 billion, not counting lost revenue from government entities like national parks that were unable to collect fees.
(Excerpt) Read more at scmp.com ...
The jobs number could be a lot weaker in January if the shutdown continues through next week, when the department conducts its payroll survey; most of the furloughed workers would be counted as unemployed.
Additionally, jobless claims of private contractors have probably already increased by as much as 15,000, according to Michael Feroli, chief US economist at JPMorgan.
That all means monthly jobs could decline in January for the first time since 2010.
Beth Ann Bovino, S&P Global Ratings chief US economist, estimated that real GDP growth would be lowered by a tenth of a per cent for every two weeks that the partial shutdown persists, which she said came out to about US$1.2 billion per week.
The Chinese concern trolls are hoping we’ll forget about that pesky wall too.
He’ll of a lot less than what Obama Care did per day, for years.
Good. I can’t stand all those on the Federal teat in Northern Virginia and Maryland. what a liberal cesspool they have created around D.C. Too hell with them all.
Good. I can’t stand all those on the Federal teat in Northern Virginia and Maryland. what a liberal cesspool they have created around D.C. Too hell with them all.
Never mind the hit to the porn industry losing 800,000 subscribers at work.
“...originally reported by Victoria Guida on politico.com on January 9, 2019...”
Anything on that crap fake news site id more than suspect for veracity.
FAKENEWS... Doesn’t take into account the savings to the American people from not having these government workers on the job.
Dems aren’t concerned about the Fed Employees without paychecks.....they’re concerned we’ll find out we don’t need the vast number of those.
Pocket change
This Chinese website actually cares about our economic loss? Hogwash and hogwash again concerning its figures. Did CBS or CNN “fact check” this assertion? Nonsense.
What’s the economic damage from the illegals?
Hey, thats one wall every five days.
Thanks Schmuckie and sockpuppet.
So a years damage is only 52 billion. A drop in the bucket. As a nation we have bigger fish to fry.
State Capitols’ workers hardest hit: same ones who kept their boats, vacays, houses, insurance, college funds while the rest of us were devastated from 2008-2017.
This story is published in a content partnership with POLITICOAt least the fake news comes with an up-front warning here.
Democrats dancing in the halls over this.
Only thing thy are pissed about is the tax revenues they wont get from other peoples work.
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