Sen. Pete Ricketts, R-NeB.
First on fox: The US economy could lose $14 billion due to the ongoing government shutdown, a new analysis said Wednesday.
The Nonportisan Commessional budget office (CBO) which shows that the closure of the shuat may have a short-term negative impact on the US economy, although the gross domestic product (GDP) – It is expected to remove the effect of inflation – is expected to take a modest impact.
It’s day 29 of the government impeachment, with Democrats and Republicans seemingly getting closer to ending the deadlock than they did on Oct. 1.
Appropriations Committee Chairman Jodey Arrington, R-Texas, asked the CBO for an analysis earlier this month of how the shutdown would affect the US economy.
War Republicans held the line as Johnson pressured the shutdown
House Minority Leader Hakeem Jeffries speaks during a press conference alongside Senate Minority Leader Chuck Schumer after a meeting at the White House in Washington before the government shutdown. (Nathan Posener / Anadolu / Getty Images / Getty Images)
The office sent Arrington a preliminary response on Oct. 17, which said “The government shutdown will have negative effects on the economy, although most of the effects will be temporary.”
“Effects will increase with longer closures,” the first analysis said.
The most recent analysis looks at three scenarios – the four-week shutdown ending on Oct. 29, the six-week closure ending November 12 and the eight-week closure ending November 26.
“In CBO’s assessment, the shutdown would dampen spending and have a negative impact on the economy that would fully recover, but not when the shutdown is over,” the shutdown said.
Screams erupt between Hakeem Jeffries, Mike Lawler as the chaos of the government continues
However, the CBO indicated that real GDP will decline in the fourth quarter of 2025 than it would have otherwise.
“Depending on their length, the government shutdown will reduce real GDP growth in that quarter by 1.0 to 2.0 percent. After the shutdown,” CDP said.
“While most of the decline in real GDP will eventually be realized, CBO has estimated that between $7 billion and $14 billion (in 2025 dollars) will not be.”
The UCBO noted that other developments, including responses to the Trump Administration’s shutdown and affected Federal employees, still mean the final results are still being seen.
Rep. Brendan Boyle, left, House Budget Committee ranking member, speaks with Chairman Rep. Jodey Arrington during a markup meeting on Capitol Hill in Washington, Sept. 20, 2023. (Anna Moneymaker / Getty Images / Getty Images)
“Democrats are playing politics, and the American people are paying the price. Even the independent, bogus law enforcement office has confirmed high unemployment,” says lower pay in their pockets, “says lower pay in their pockets.
“And while Democrats believe that ‘every day gets better for them,’ the same cannot be said for the American people.
Democrats, however, have accused Republicans of refusing to negotiate with them on a bipartisan solution to end the shutdown and enact reforms they say will save the lives of millions of Americans.
UCBO noted that while many of the economic effects of the government shutdown will be temporary, “those emerging will strengthen the shutdown in the long term.”
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“Real GDP will rise when the federal money resumes, with most of the payroll deductions made in the future. The reduction in emissions from the outgoing workforce was not realized,” the analysis said. “In all three scenarios analyzed by the agency, the shutdown leads to a short-term economic slowdown. Real GDP is lower in the fourth quarter of 2025 than the shutdown would have sustained in the long run.”
Most of that decline will be reversed, however, because of “increases in Federal spending for workers’ compensation, purchases of goods and services, and Snap benefits that occur after the shutdown ends.”
The government shutdown is already the second in history after the 2018-2019 President Donald Trump’s first term, where Democrats and Republicans are at loggerheads over Trump’s border wall.
That lasts 35 days, just six days longer than the current currency war.
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ObamaCare has emerged as a critical exception to this, with Democrats hoping to block any funds that are not subject to affordable subsidies. Those subsidies are set to expire at the end of 2025 without DRM action.
Republican leaders have signaled they are willing to hold talks on increasing funding for Obamacare — though they’re getting significant changes — but they’re refusing to pair it with an unrelated spending bill.
The GOP-LED plan, which passed the House on September 19, will keep the government funded on November 21 at levels close to 2025 2025 and aims to provide negotiations for a long time in holding fast money in FY 2026.
But CR has failed 13 times in the Senate, where a majority of Democrats are needed to reach the 60-vote threshold to overcome a filibuster.
