As the government shutdown leaks into its fifth week, the impact continues to mount.
Nearly 1 million federal employees and contractors are going without paychecks — although thousands have been called back to work without pay to help the government keep functioning. President Donald Trump on Wednesday signed a bill ensuring that furloughed workers will receive back pay once the shutdown ends.
And White House economists now say the shutdown is having a bigger effect on the national economy than they expected. Kevin Hassett, chairman of the Council of Economic Advisers, said the shutdown reduces quarterly economic growth by 0.13 percentage point for every week that it lasts — about twice their initial projection.
That projection is no cause for panic, but it wipes out growth that should be taking place and it promises to have lingering consequences. Morten Wendelbo of the American University School of Public Affairs wrote in an opinion piece, “As the shutdown draws on, it increasingly weakens the government’s ability to protect Americans down the road, long after federal workers are allowed to go back to work.”
The impasse has been caused by Trump’s demand that $5.7 billion for a wall along the Southern border be included in a spending bill from Congress. Democrats have refused to acquiesce. It all amounts to a battle of wills that is holding the federal government hostage and threatening the economic gains that have been made during Trump’s time in office.