The Shutdown in the US has now been three weeks. He continues, this would be the longest budget dispute in the history of the country. The reason for the Blockade is that US President, Donald Trump insisted on the money for the wall to Mexico. For the construction he calls for $ 5.7 billion. The last Trump threatened with the proclamation of national emergency, to bypass the Congress in the procurement of the billion total.
Since the 22. December is a budget freeze for several ministries. Approximately 800’000 employees of government and Federal authorities to work without pay, or on furlough, to endure. The economic cost of the Shutdown is estimated to be the chief economist of the President to 1.2 billion dollars per week.
costs exceed the wall
With a similar amount attributed to the credit rating Agency Standard & Poor’s (S&P). To this day, the Shutdown is expected to have cost the US economy approximately $ 3.6 billion, appreciates you. Within two weeks, the losses due to the Shutdown is likely to exceed the cost of the wall is adopted, the budget dispute.
at a cost of a Shutdown because employees normally receive after the standstill, a compensation for the lack of pay. National parks, museums and other government operated Agencies must forgo the income from entrance fees. “We are going to get people to pay for a half month of work, you have not done,” said Tyler Evilsizer, Director of research at the bipartisan Committee for a responsible Federal budget, the US newspaper “Politico”.
employees work unpaid more
Nevertheless, the costs are comparatively low. The 16-day Shutdown in 2013, then-US President Barack Obama led to losses of around 24 billion dollars, how S&P calculated. This is the time to have the growth of the gross domestic product (GDP) by 0.6 percentage points.
Today, Economists expect that the Shutdown is likely to weaken economic growth per week of only 0.04 to 0.07 percentage points of gross domestic product. Compared to previous Shutdowns had affected the current administration still only a small part of the government authorities. In addition, around half of the state continue to work employees unpaid, which reduces the cost.
the national parks were closed, but tourists would spend their money elsewhere. “The Shutdown is a Problem, but the effects are rather low,” says Beth Ann Bovino, Economist at S&P Global, the news station BBC. She adds: “Although the costs, it still hurts.”
“a Less clear picture of the economy”
Because of the Shutdown comes at a bad time. The sentiment indicators for the U.S. industry fell significantly in December. In addition, US equities are losing currently. The current Blockade is likely to hamper the goal of Trumps, to achieve a three percent growth in the current year.
Central Bank chief Jerome Powell warned recently that an extended Shutdown would affect growth. Then the financial blockade in the economic data to be “fairly clear” to reflect, he said.
The Fed, meanwhile, is also worried to miss due to the Shutdowns of important economic data. Because, among other things, the U.S. Commerce Department, which released the Fed’s key reports, since three weeks of its work. “We have a less clear picture of the economy, if this would continue for much longer,” said Fed Chairman Jerome Powell. (Tages-Anzeiger)
Created: 11.01.2019, 20:10 PM
