Skip to main content
The Shutdown Won’t Stop Growth
President Donald Trump debates with then House Minority Leader Nancy Pelosi Senate Minority Leader Chuck Schumer as Vice President Mike Pence listens during a meeting in the Oval Office of White House on Tuesday, Dec. 11, 2018 in Washington, DC. (Photo b
(Photo by Jabin Botsford/The Washington Post via Getty Images)

The Shutdown Won’t Stop Growth

Harold Furchtgott-Roth

Does the U.S. government shutdown endanger economic growth? It has led to missed paychecks, a source of enormous pain and anxiety for furloughed employees and their families. Yet these employees represent approximately 0.5% of all American workers (although a much higher share in Washington and its suburbs). The effect of the furloughs on gross domestic product is likely small.

Nonetheless, some economic forecasters have reduced their estimates of first-quarter annualized economic growth by 0.2 to 0.4 percentage point due to the partial government shutdown. This would amount to a loss of GDP in the first quarter of 2019 of between $10 billion and $20 billion—substantially more than President Trump demands for the border wall.

Read the full article on the Wall Street Journal website here

Related Articles

Three Times the Price of Gold Collapsed — And Lessons for Today

Brendan Brown

In looking at the gold price beyond the next summit we should be concerned about restrictions which could imperil the free market in gold. ...

Continue Reading

Trump Giving Iran One Last Chance

Blaise Misztal

In an interview on CNBC, Blaise Misztal discusses President Trump’s decision to call off a retaliatory strike on Iran and escalating tensions....

Watch Now

Austria's Lessons for Europe

Peter Rough

Sebastian Kurz and his government have been ousted by Parliament following a recent scandal... what's next for the Austrian government and citizens? ...

Continue Reading