From the people who brought you "who knew a shutdown would shut down the government?" comes this revelation, roughly 26 days too late.
As some of you may recall, because it happened just five days ago, White House economic guru
Kevin Hassett claimed last week on PBS NewsHour that the government shutdown isn't a big deal, and in fact is arguably a good thing because hundreds of thousands of furloughed workers are basically getting a free vacation. "In some sense, they're better off," the Council of Economic Advisers chairman said out loud, in response to the question "Is the government shutdown going to have a negative impact on the economy, particularly if it drags on?" But just five days later—and some
26 days into the shutdown—the White House has
apparently come to a new conclusion: this whole government-closure business might have a pretty terrible impact on the economy!
The partial government shutdown is inflicting far greater damage on the United States economy than previously estimated, the White House acknowledged on Tuesday, as President Trump's economists doubled projections of how much economic growth is being lost each week the standoff with Democrats continues. The revised estimates from the Council of Economic Advisers show that the shutdown, now in its fourth week, is beginning to have real economic consequences. The analysis, and other projections from outside the White House, suggests that the shutdown has already weighed significantly on growth and could ultimately push the United States economy into a contraction.
Hassett, who, as a reminder, suggested five days ago that furloughed workers should be thanking Trump for the free time off, said on Tuesday that one of his furloughed staffers has started driving for Uber to make ends meet, and that the shutdown could permanently hurt economic growth expectations even after the government reopens—whenever that may be!
