GDP Estimates Tumbling Due To Shutdown: Build A Wall And Crime Will Fall

As the shutdown lingers, GDP estimates for the first quarter keep dropping. Meanwhile, Trump has a new slogan. 

Have to admit, that's a catchy slogan.

Zero Growth

Bloomberg reports White House Says U.S. Could See Zero Growth This Quarter With Shutdown.

White House Council of Economic Advisers Chairman Kevin Hassett said that if the partial government shutdown extends through March, there’s a chance of zero economic expansion this quarter, though “humongous” growth would follow once federal agencies reopen.

Asked in a CNN interview Wednesday if the U.S. could see zero growth with the shutdown, Hassett responded, “Yes, we could, if it extended for the whole quarter.”

“It is true that if we get a typically weak first quarter and extended shutdown that we could end up with a number that is very low,” or “very close to zero,” Hassett said. He added that he sees the chance of a recession in 2020 as “very, very close to zero.” Growth could rebound to “4 or 5 percent” in the second quarter if the government reopens, he said.

Analysts surveyed by Bloomberg News last week said that if the shutdown lasts through the end of March, it would subtract 0.8 percentage point from first-quarter growth, which would end up at 1.5 percent, based on median responses. Estimates for GDP, based on an annualized pace, ranged from a contraction of 2 percent to growth of 3.3 percent.

Missing Paychecks Starting to Bite

Damage Piling Up

The New York Times Reports Shutdown’s Economic Damage Starts to Pile Up, Threatening an End to Growth.

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Gary Anderson 1 year ago Contributor's comment

He may be catchy, but Trump is hardly a catch.