Sending Office: Honorable Carolyn B. Maloney
I would like to share with you a
fact sheet on the economic costs of the government shutdown, which was prepared at my request by the staff of the Joint Economic Committee.
The costs of the shutdown will extend beyond those directly affected and will pose growing risks to the U.S. economy. Business confidence likely will weaken; consumer spending may slow; travel delays are already disrupting business activity; IPOs are being
delayed; mortgage and business lending has slowed; and the broader economy shows signs of slowing. The Chamber of Commerce has said that the shutdown is “harming the American people, the business community, and the economy.”
Leading forecasters are revising down their estimates for economic growth. Mark Zandi, chief economist at Moody’s, says that if the shutdown lasts into February, it could reduce first quarter gross domestic product by nearly $9 billion. The rating agency
Fitch has warned that a prolonged shutdown could lead to a downgrade for United States debt, raising borrowing costs. Even President Trump’s Council of Economic Advisers projects that economic growth will decline every week the government shutdown continues.
We plan to update the attached fact sheet as more information becomes available. I hope you find this short report useful. Please do not hesitate to contact me or my staff if you have additional questions.
CAROLYN B. MALONEY
Senior House Democrat, Joint Economic Committee
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