Government Shutdowns May Have Lasting Impact on US Economy, Experts Warn
A prolonged government shutdown that shows no signs of ending soon may have a lasting impact on the US economy, economists warn. Unlike previous shutdowns that rarely result in lasting economic harm, this one is different due to its length and the moves made by the Trump administration.
While some experts believe the impact could be worse than usual, others argue that the US economy is stronger than it was during previous shutdowns. However, the uncertainty surrounding the shutdown and its potential economic fallout is causing concern among economists and policymakers. The White House has downplayed the effects of the shutdown, but Democrats are quick to blame the administration for the economic consequences.
The Trump administration's moves to increase its negotiating leverage over Democrats, including mass layoffs and cuts in funding for various programs, could leave a lasting dent in the American economy. The impact on consumer spending is already being felt, with higher prices due to elevated tariff levels on foreign countries. Additionally, the shutdown is weighing on farmers who rely on undocumented workers, threatening to drive up grocery prices.
The Federal Reserve is expected to cut interest rates later this month to mitigate the economic fallout, but experts warn that the economy is in a more fragile place than usual. Any little thing could do the economy in, according to Mark Zandi, chief economist at Moody's.
While some economists believe the US economy is stronger than it was during previous shutdowns, others are warning of potential risks and consequences. The situation remains uncertain, with the Trump administration and Democrats engaging in a blame game over the economic fallout of the shutdown.
A prolonged government shutdown that shows no signs of ending soon may have a lasting impact on the US economy, economists warn. Unlike previous shutdowns that rarely result in lasting economic harm, this one is different due to its length and the moves made by the Trump administration.
While some experts believe the impact could be worse than usual, others argue that the US economy is stronger than it was during previous shutdowns. However, the uncertainty surrounding the shutdown and its potential economic fallout is causing concern among economists and policymakers. The White House has downplayed the effects of the shutdown, but Democrats are quick to blame the administration for the economic consequences.
The Trump administration's moves to increase its negotiating leverage over Democrats, including mass layoffs and cuts in funding for various programs, could leave a lasting dent in the American economy. The impact on consumer spending is already being felt, with higher prices due to elevated tariff levels on foreign countries. Additionally, the shutdown is weighing on farmers who rely on undocumented workers, threatening to drive up grocery prices.
The Federal Reserve is expected to cut interest rates later this month to mitigate the economic fallout, but experts warn that the economy is in a more fragile place than usual. Any little thing could do the economy in, according to Mark Zandi, chief economist at Moody's.
While some economists believe the US economy is stronger than it was during previous shutdowns, others are warning of potential risks and consequences. The situation remains uncertain, with the Trump administration and Democrats engaging in a blame game over the economic fallout of the shutdown.
. i mean, trump's all about being tough but this is just gonna hurt regular people like farmers who can't afford to pay these illegals anymore 
. consumer spending already suffering from higher prices cuz of tariffs... and now the fed might have to cut interest rates? that's just delaying the inevitable imo 
.
. it's like, can't we all just agree and move forward? 
. I mean, we've been through government shutdowns before and the economy always bounced back 
. This one's just as bad as any other, right? 
The Fed cutting interest rates later this month is gonna make all the difference 
.
. It's easy to say "this one's different" when you're an economist with a vested interest in sounding alarmist 
. Can't we get some real info out here? 
. AND THE FARMERS, OH MAN, THEY'RE GOING TO BE SUFFERING BIG TIME WITH THOSE UNDOCUMENTED WORKERS 
. WE NEED TO GET THIS SHUTDOWN OVER ASAP BEFORE IT'S TOO LATE!!! 
. It's all about the blame game now between him and the Dems, but at the end of the day, US consumers are gonna feel the pinch 
.
i think its not just about the us economy, its also about how our goverment handles crisis situations... like, what if other countries see us as unreliable or something? 
why do we need undocumented workers? lets find a way to make it work for everyone! 
I don't think government shutdowns have that much of an impact on the economy. Like, how many times can people actually stop buying stuff because their government is being dramatic? 
. I feel for all the farmers who rely on undocumented workers, it's heartbreaking to think that their livelihoods could be at risk 
. It's not fair to put so much uncertainty on our economy when there are people struggling to make ends meet 
. On one hand, our economy has been strong for a while now 
, but if a prolonged government shutdown takes its toll, it could have some serious effects 
. On the other hand, I've seen some economists say we're better off now than during previous shutdowns 
, which gives me hope that we can weather this storm 
. The Federal Reserve cutting interest rates later this month is a good move 
. We need to be prepared for any scenario and make sure our policies are in place to support the most vulnerable people 
. I'm all for transparency, but this blame game between the White House and Dems is getting old 
. And honestly, I'm just worried about all these people who are going to get hurt because of politics 
️.
. In this case, the economy is like that weather forecast - you can anticipate some rough patches, but the actual impact might be harder to gauge 
. Is the shutdown just about politics or is it also about people's lives? The farmers, the workers, the families who are getting affected - they're not just statistics on an economic graph 
. All we can do is be prepared for the unexpected and support those who are being impacted 
last week and I'm still reeling from the stunning geysers and hot springs! You know what's crazy? The fact that some of those thermal features are so sensitive to temperature changes, it's like they're alive 
. I mean, have you ever seen a geyser erupt in real-time? It's mesmerizing 
. Maybe the increase in tariffs is affecting the importation of specialty hops or something? Just a wild guess, but it's fun to think about 
.
. If prices keep going up due to those tariffs, it's just gonna hurt regular folks who are already struggling. And what's with all this talk of interest rates getting cut? Like, isn't that just a Band-Aid solution or something?
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. And what's a few layoffs & cuts to gov't programs? it's not like ppl are gonna starve or lose their homes 
. i mean, come on, it's not like this is the end of the world 