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REPORT: The Partial Government Shutdown Has Cost the US Economy $3.6 Billion; Will Hit $5.7 Billion in 2 Weeks

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US economy losses 3.6 billion 5.7 billion government shutdown National Parks

US President Donald Trump speaks during his visit to US Border Patrol McAllen Station in McAllen, Texas, on January 10, 2019. (Photo by Jim WATSON / AFP) (Photo credit should read JIM WATSON/AFP/Getty Images)

Most in the United States are aware of the human costs of the partial government shutdown orchestrated by President Donald Trump to force Congress to acquiesce to his demands. Government workers affected by Trump’s shutdown shared stories with the press and on social media.

But one factor fewer people are aware of is the effect of Trump’s shutdown on the United States economy. Standard & Poor’s Global Ratings performed an analysis to determine what that cost is thus far as the GOP supported shutdown hits the 21st day.

Standard & Poor (S&P) puts the current price tag at $3.6 billion.

And the longer the Republican led Senate under Majority Leader Mitch McConnell’s continue to block efforts to reopen the government, the more the economy will lose. S&P stated after the third week the costs will balloon beyond the $1.2 billion it cost during the first three weeks of Trump’s shutdown.

The direct hit to the economy comes from the loss of productivity from furloughed workers. But indirect losses are significant as well.

Companies, hotels and restaurants around closed or neglected national parks and monuments experience losses. And unlike government employees, contractors doing business with the government laid off staff.

Those private employees are out of work and stand no chance of getting back their lost wages and benefits.

And S&P stated even if furloughed government workers are paid for their lost wages, it will only cause a rise in inflation and not a rebound in the economy. Furloughed workers—unlike those currently working without pay—are not guaranteed payment of lost wages, but some members of Congress called for them to be compensated.

People reacted to the news from S&P.

While hardcore Trump supporters blame Democrats for the shutdown, ignoring the President stating he would be proud to shut down the government and would own it and not blame Democrats…

…they are in a definite minority.

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