The White House's Own Top Economist Just Issued a Dire Warning for the Economy If the Government Shutdown Doesn't Come to an End
As President Donald Trump's government shutdown drags through its 33rd day, one of his top economic advisors is warning of economic stagnation should an end to the stalemate over Trump's border wall not be reached soon.
White House Council of Economic Advisers Chairman Kevin Hassett sounded the alarm on CNN Wednesday morning.
"By your calculations," Poppy Harlow asked Hassett, "couldn't we then see zero growth if this persists through the end of the quarter?"
Hassett, hesitant to directly answer, was pressed again. Harlow again asked if we "could we see zero growth" if the shutdown continues into the spring.
"Yes, we could," Hassett replied. "If it extended for the whole quarter and given the fact that the first quarter tends to be low because of residual seasonality then you could end up with a number very close to zero in the second quarter."
"White House officials say the partial government shutdown is stripping away roughly 0.1 percent of economic growth per week," The Washington Post noted on Wednesday. "Growth for the first quarter was already projected to be low, at below 2 percent, which is how Hassett said he came to his conclusion."
The federal budget deficit is also predicted to approach $1 trillion this year.
So much for Trump's "magic wand."
@CNNPolitics I guess the "magic wand" was just a plain old stick afterall. https://t.co/8RYxoOWyKg— T.O. Resident (@T.O. Resident) 1548254787.0
@CNNPolitics A very successful formula for all the winning Trump promised us.— David (@David) 1548254709.0
@CNNPolitics Conman Trump has put us in a slump!— The Dose of Reality (@The Dose of Reality) 1548254760.0
@CNNPolitics @POTUS and his people keep touting about how great the economy is.. For who? Where? Everyone I know in… https://t.co/Oc6SJwSZNJ— Adam (@Adam) 1548257023.0
Roughly 800,000 federal employees, including members of the armed services, are either furloughed or being forced to work for free. Why, then, is Hassett so chipper?
It must be nice to have nothing to lose.
@PoppyHarlowCNN @WhiteHouseCEA Kevin Hassett has this smile like a Cheshire cat being forced to admit a 0% growth r… https://t.co/sJgxtiW6aB— Show_me (@Show_me) 1548261912.0
@CNNPolitics Look at him. Smiling. This is not abstract. It's real.— L'il Nervous (@L'il Nervous) 1548254917.0
@CNNPolitics That's okay. Is it not he who thinks all of the civil servants are on a vacation.— Mafcomp (@Mafcomp) 1548255778.0
@CNNPolitics someone wipe that smile off his face— amack (@amack) 1548255763.0
Dark times may lie ahead.
@jimsciutto @CNNnewsroom That's what they are worried about?? Not the unsafe air travel, or uninspected food, or un… https://t.co/56MgsG5T0o— JaneJensen (@JaneJensen) 1548254930.0
@jimsciutto @mkraju @CNNnewsroom He's freaking laughing and smirking the whole interview. Shame even giving him a… https://t.co/zZtgAmCxNl— kathyking (@kathyking) 1548253850.0
People are laying blame in one place.
This is Trump's shutdown, and Republicans are standing with him.
@jimsciutto @CNNnewsroom Zero growth = Trump and GOP— Cat Balou - what does it mean when... (@Cat Balou - what does it mean when...) 1548254641.0
@jimsciutto @CNNnewsroom Good. Trump will just keep destroying the country until there is nothing left. Good job, R… https://t.co/XehmaYMfz4— 🌊❄️🆘🏳️🌈 Dexter (@🌊❄️🆘🏳️🌈 Dexter) 1548261243.0
@CNNPolitics There goes the “great” republican plan to put a tyrant in the White House.— EdK (@EdK) 1548255350.0
@jimsciutto @CNNnewsroom Destroying the economy to own the libs.— Anita Creamer (@Anita Creamer) 1548255613.0
Wonder who could be reveling in this chaos...
@jimsciutto @CNNnewsroom It’s just what Putin wants.— Gravely Concerned (@Gravely Concerned) 1548253533.0
@jensdatter @jimsciutto @mkraju @CNNnewsroom THEIR income sources will increase,as they move2privatize our gov't, e… https://t.co/gKslD1vh0C— eLViS (@eLViS) 1548256465.0
@jimsciutto @CNNnewsroom Putin would love this. All part of his plan.— SandyBeall#Resist#VoteBlue#ImpeachDonaldTrump 🇺🇸 (@SandyBeall#Resist#VoteBlue#ImpeachDonaldTrump 🇺🇸) 1548254921.0
Trump vowed to run the country like he did his businesses - right into the ground.