Government Shutdown Cost U.S. Economy $3 Billion: CBO Report



In the last quarter of 2018 the economy took a 0.1 percent hit, equal to $3 billion dollars, said the report released by the nonpartisan Congressional Budget Office (CBO).

The CBO said in the report that the "substantial reduction over the 10-year period is nearly entirely because appropriations for 2019 that are designated as emergency requirements total $2 billion so far - a sharp reduction from the $108 billion that was appropriated in 2018, mostly for relief and recovery efforts related to the hurricanes and wildfires that occurred in 2017".

Throughout the 35-day shutdown prompted by President Trump's demand for border wall funding, 800,000 federal employees went unpaid and six government departments went unfunded.

WASHINGTON: The five-week government shutdown subtracted $11 billion from the U.S. economy, about twice the amount President Donald Trump sought to fund a border wall, an independent congressional body said Monday.

The five-week shutdown also delayed about $18 billion in federal discretionary spending.

Some 800,000 federal employees were furloughed or required to work without pay during the shutdown.

Overall, CBO predicts that just $3 billion in lost gross domestic product will be permanently lost, a modest figure in a $20 trillion-plus economy.

"As the dust settles from the Trump Shutdown, it is clear as day that the president's temper tantrum caused serious and lasting damage to our nation's economy", Schumer said in a statement.

President escalates border battle with Democrats, cancels congressional travel
Trump has rejected a short-term legislative fix and dug in for more combat, declaring he would "never ever back down". ET, and Republicans who attended publicly lamented that their colleagues from across the aisle did not come.

Republican Trump had demanded that legislation to fund the government contain $5.7 billion for his long-promised wall along the US-Mexico border.

Trump said Sunday he thinks there is less than a 50 percent chance the congressional border security negotiators will be able to reach an agreement he would accept by their self-imposed Februay 15 deadline.

The study finds that roughly $3 billion was removed from the gross domestic product in the fourth quarter of a year ago and an additional $8 billion was removed this month.

Some of the affected private-sector businesses will never recoup the income they lost, CBO said.

But its report said "underlying those effects on the overall economy are much more significant effects on individual businesses and workers".

While some said Trump caved by reopening the government with no border wall funding (conservative commentator Ann Coulter described Trump as a "wimp"), he insisted that the deal was "in no way a concession".

The report says that because of the shutdown, which lasted from December 22 through last Friday, about $18 billion in discretionary government spending was delayed.

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