The Trump administration now estimates that the cost of the government shutdown will be twice as steep as originally forecast.
The original estimate that the partial shutdown would subtract 0.1 percentage point from growth every two weeks has now been doubled to a 0.1 percentage point subtraction every week, according to an official who asked not to be named.
The administration had initially counted just the impact from the 800,000 federal workers not receiving their paychecks. But they now believe the impact doubles, due to greater losses from private contractors also out of work and other government spending and functions that won’t occur.
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The article says that estimates from economists are about half of the new government estimate. In other words, economists think the effect is 0.1% every other week. Either way, it is bad for the economy. Something or somebody will have to break soon.
There are decades where nothing happens; and there are weeks where decades happen.