US government shutdown: country to lose $15 billion in GDP each week - Politico
Photo: if the shutdown lasts a month, it could result in another 43,000 unemployed (Getty Images)
Economic advisers to President Donald Trump have warned that a prolonged government shutdown could lead to serious economic consequences for the United States, according to Politico.
A memo warns that the United States could lose $15 billion in GDP growth each week during the ongoing government shutdown.
If the shutdown lasts for a month, it could result in an additional 43,000 unemployed, not counting the 1.9 million federal civilian employees currently on unpaid leave or working without pay, 80% of whom are based in the Washington, D.C. area.
According to White House aides, the document, which will be distributed to Republican lawmakers, will serve as the basis for the Republican response to the government shutdown.
Politico reported that disagreements in Congress remain over funding for Obamacare insurance subsidies. The Trump administration claims these subsidies would end up benefiting undocumented immigrants.
"The very real economic consequences of a prolonged government shutdown are entirely on Senate Democrats who are holding the federal government, economy, and country hostage to give illegal immigrants free health care," White House spokesperson Kush Desai said in a statement.
The outlet noted that the White House is working to coordinate a unified Republican message on the shutdown across all levels, aimed at placing full responsibility on the Democrats.
US government shutdown
On Wednesday, October 1, the US federal government partially shut down after Republicans and Democrats failed to reach a budget agreement.
As a result, federal agencies have suspended operations, social programs are on hold, and hundreds of thousands of federal employees have been placed on unpaid leave.
Read more about party positions and how the shutdown affects the US dollar and gold prices in the full RBC-Ukraine report.
