White House economic advisors warn of economic spillover effect of government shutdown

The White House is warning of the potential for spillover effects into the broader economy because of the government shutdown, now entering its second week. The White House's Council of Economic Advisers says calculations based on the number of federal employees and federal contractors not being paid imply that a month-long shutdown would reduce consumer spending by $30 billion. The CEA says approximately half of which would directly be due to federal employees and contractors not working and half would be due to spillover effects on other sectors. More broadly, CEA says delays in agency processes ranging from small business loans to export licenses approvals to awarding federal contracts also would negatively impact the U.S. economy.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.