Tags: shutdown | loss | economy

S&P: Economy Lost at Least $6 Billion to Shutdown

us capitol roof opening up with dollars flowing out
(Dreamstime)

Saturday, 26 January 2019 11:29 AM

The U.S. economy lost at least $6 billion during the partial shutdown of the federal government due to lost productivity from furloughed workers and economic activity lost to outside business, S&P Global Ratings said on Friday.

President Donald Trump agreed on Friday to end the 35-day partial shutdown, the longest in history, without getting the $5.7 billion he had demanded from Congress for a border wall.

"Although this shutdown has ended, little agreement on Capitol Hill will likely weigh on business confidence and financial market sentiments," S&P said in a news release.

The three-week spending deal reached with congressional leaders, quickly passed by the Republican-led Senate and the Democratic-controlled House of Representatives without opposition and signed by Trump, paves the way for tough talks with lawmakers about how to address security along the U.S.-Mexican border.

The Republican president’s agreement to end the shuttering of about a quarter of the federal government without securing wall money - an astonishing retreat - came three days after he had insisted, “We will not Cave!”

But Trump vowed that the shutdown would resume on Feb. 15 if he is dissatisfied with the results of a bipartisan House-Senate conference committee’s border security negotiations, or he would declare a national emergency in order to get the wall money without congressional approval.

The lapse in funding shuttered about a quarter of federal agencies, with about 800,000 workers either furloughed or required to work without pay. Many employees as well as contractors were turning to unemployment assistance, food banks and other support. Others began seeking new jobs.

Speaking in the White House Rose Garden on a chilly, sunny winter day, Trump said he would act to ensure that federal workers get their back pay “very quickly, or as soon as possible.”

Trump had previously demanded the inclusion of the money to help pay for a wall in any legislation to fund government agencies, but Democrats had blocked him.

An administration official, speaking on condition of anonymity, said that stories of law enforcement officials not being able to do their jobs at full capacity helped convince Trump to agree to a short-term solution to re-open the government. The official said the White House ultimately would accept a deal with lawmakers if it includes wall funding, even if it is less than $5.7 billion.

© 2019 Thomson/Reuters. All rights reserved.

   
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Politics
The U.S. economy lost at least $6 billion during the partial shutdown of the federal government due to lost productivity from furloughed workers and economic activity lost to outside business, S&P Global Ratings said on Friday.
shutdown, loss, economy
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2019-29-26
Saturday, 26 January 2019 11:29 AM
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