US shutdown could cost economy USD 15 billion a week - Politico

A prolonged shutdown of the US government could lead to serious financial losses for the country. This is reported by Politico with reference to a memorandum from President Donald Trump's economic advisors.

According to the document, each week of the shutdown will cost the economy about USD 15 billion in lost GDP growth. If the government remains paralyzed for a month, it could lead to about 43,000 more unemployed people.

The estimates do not take into account the 1.9 million federal civil servants who are already on forced unpaid furloughs or continue to work without pay. About 80% of them live and work in the Washington area.

The White House explained that they plan to use this data in communication with Republicans as an argument in the fight with Democrats for budget spending.

Politico emphasizes that the main point of contention in Congress has been the funding of health insurance subsidies under the Obamacare program. The Trump administration claims that these funds could end up in the hands of illegal immigrants.

"The very real economic consequences of a prolonged government shutdown fall squarely on the shoulders of Democratic senators who are holding the federal government, the economy, and the country hostage to provide illegal immigrants with free health care," said White House deputy press secretary Kush Desai.

As reported, on October 1, the US federal government partially suspended its work after Republicans and Democrats failed to agree on a budget. Due to the shutdown, some government agencies have stopped operations, social programs have been frozen, and hundreds of thousands of civil servants have been sent on unpaid furloughs.