In the nation's capital, Kevin Hassett, Director of the National Economic Council, addressed reporters on Thursday, shedding light on the economic repercussions of the government shutdown, which was attributed to Democratic actions.
The shutdown, which spanned a record 43 days, inflicted a substantial economic toll, costing the United States approximately $15 billion each week. This fiscal strain is anticipated to reduce the gross domestic product (GDP) growth by 1 to 1.5 percent in the fourth quarter.
As reported by Breitbart, Hassett's remarks came shortly after President Donald Trump enacted a continuing resolution to temporarily reopen the government until the end of January. During his discussion with the press, Hassett elaborated on the broader economic impact, stating, "Our Council of Economic Advisers said that it costs about $15 billion a week and it accumulates to maybe 1-1.5 percent of GDP when you account for multiplier effects."
He further highlighted the human cost, noting that "60,000 Americans, not government workers, have lost their jobs because of the reduced economic output."
The shutdown's effect on GDP growth was particularly stark. Initially, projections for the quarter anticipated a robust growth rate of 3 to 4 percent, consistent with the preceding quarters. However, Hassett indicated that the actual growth would be significantly diminished, remarking, "Now, youre looking at something about half of that."
The shutdown also disrupted the federal government's capacity to deliver critical economic data. White House Press Secretary Karoline Leavitt emphasized that the delay in producing essential reports, such as the October jobs and consumer price index reports, was a significant setback. Hassett acknowledged the data challenges, stating, "Theres some data" with the potential release of the September jobs report in the coming week.
However, he conceded that the October unemployment rate remains elusive, explaining, "The October employment report, for the payroll side, will be able to be calculated, but the household survey wasnt completed, so well get sort of half a jobs report."
Despite these challenges, Hassett expressed confidence in the eventual reconstruction of most economic figures, although the precise unemployment rate for October will remain unknown due to the incomplete household survey. "Most everything else, I think, well be able to concoct the correct number after we look back," he assured, underscoring the complexities of economic data collection during the shutdown.
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