Spotlight: Longest U.S. gov't shutdown inflicts worse economic damage than expected
                 Source: Xinhua | 2019-01-24 00:50:52 | Editor: huaxia

Photo taken on Jan. 12, 2019 shows the statue of George Washington outside the Federal Hall National Memorial, a tourist attraction which is closed due to partial government shutdown, in New York, the United States, Jan. 12, 2019. (Xinhua/Wang Ying)

NEW YORK, Jan. 22 (Xinhua) -- As the partial government shutdown stretched to the second month, experts and lawmakers warned it would inflict far greater damage on U.S. economy than previously anticipated, and the longer the stalemate lasts, the more widely effects will be felt.

The record-long government shutdown began on Dec. 22 last year, after Congress failed to pass a spending bill that included more than 5 billion U.S. dollars in funding for the border wall long-promised by U.S. President Donald Trump.

The shutdown has affected a quarter of the federal government and forced 800,000 federal workers to miss their paychecks.


SLOWER ECONOMIC GROWTH

Economists said the shutdown has already taken a toll on the country's first quarter GDP, accompanied by broader economic implications.

John Williams, president of the Federal Reserve Bank of New York, said in a recent speech that he expected the shutdown to take 0.5 to 1 percentage point off the first-quarter growth depending on how long the impasse would last.

Sourabh Gupta, senior fellow at the Institute for China-America Studies, said while direct economic effects are of manageable proportions, people should be aware of the broader economic consequences flowing from the shutdown.

"The largest of these is the damage to economic confidence stemming from the reality of political incompetence displayed by the American political establishment from the president down," said Gupta.

U.S. consumer sentiment in January plunged to the lowest level in more than two years due in part to the longest partial government shutdown.

The preliminary reading of the index of consumer sentiment in January fell to 90.7 from 98.3 in the previous month, to the lowest level since October 2016, according to a survey released by the University of Michigan on Friday.

"The loss was due to a host of issues including the partial government shutdown, the impact of tariffs, instabilities in financial markets, the global slowdown, and the lack of clarity about monetary policies," Richard Curtin, chief economist of the survey, said in a statement.

The index of consumer sentiment is closely watched by economists and analysts as an indicator of future consumer behavior. Sharp declines in confidence could signal weaker consumer spending and economic growth in the months ahead.

"The extended shutdown will extract a much greater price through the imposition of an 'uncertainty tax' on the economy, fading business and consumer confidence and the disruption of commerce indirectly linked to the basic functioning of government," said Joseph Brusuelas, chief economist at RSM US LLP.


VOLATILE FINANCIAL MARKETS

"The next two years of divided government in Washington D.C. is just a beginning. So markets are going to have to brace for a long period of volatility and incompetence which could easily impact the credit rating of the U.S., as well as the recession-risks arising thereof," said Gupta.

U.S. stock markets finished 2018 with their worst performance in a decade, as investors fretted over fears of a monetary policy mistake by the Fed, increasing trade frictions, the ongoing federal government shutdown, and potential signals of slowing global economic growth.

The Dow and the S&P 500 indexes slid 5.6 percent and 6.2 percent in an annual drop respectively, both notching their biggest annual losses since the 2008 financial crisis. The Nasdaq lost 3.9 percent in 2018, also experiencing its worst year in a decade.

The shutdown has resulted in the omission of about a dozen major data releases so far, including figures related to housing, trade and consumer spending. Investors were worried that even after the government reopens, it would take months for government departments to return to a normal schedule.

Analysts said the policy uncertainties in Washington D.C. was the least thing the market wanted and the data absence added to it.

Meanwhile, the IMF in its most recent report cited the ongoing U.S. government shutdown as a newly introduced perturbation to domestic markets, noting that the shutdown "further weighed on financial sector sentiment toward year-end."


MULTIPLE INDUSTRIES AFFECTED

The shutdown is harming the business community, according to the U.S. Chamber of Commerce, as the process of initial public offerings is delayed and the review of mergers and acquisitions is suspended, among others.

As the Department of Homeland Security sent many of its workers home, U.S. companies and employers were not able to check the immigration status of their potential hires.

Those who opened the government's E-Verify website were greeted by a red banner on the home page saying "due to the lapse in federal funding, this website will not be actively managed. E-Verify and E-Verify services are unavailable."

For the country's farmers, the loss of crucial loans, payments and other services due to closed local farm service agency offices were cutting off their lifeline. Everything from trade bailout checks to loans for low-income residents in rural areas have all come to a standstill. Many were worried that they won't be able to have enough money for food, let alone farming.

For city dwellers, life during government shutdown has also been tough.

Data showed that as thousands of employees from the Department of Housing and Urban Development were furloughed, more than 1,100 federal housing assistance contracts that expired in December or are set to expire in January were not able to be renewed. That translated into 40,000 households nationwide to be affected.

Meanwhile, there was the serious concern that the federal Supplemental Nutrition Assistance Program (SNAP), also known as food stamps, will be cut in March.

According to Center on Budget and Policy Priorities, about 15 million households, which include about 30 million people, could experience a gap between monthly SNAP payments of more than 40 days. More than 4 million low-income households, including 8 million people, could experience a gap of more than 50 days.

In New York, the longest-ever federal government shutdown has already turned into a full-blown crisis where social benefits, transportation and civil cases were all affected.

Starting from March 1 -- if the shutdown still exists by then -- New York City will lose 500 million dollars in federal support every month, which will directly affect 2 million residents, Mayor Bill de Blasio warned.

"This is not a crisis that just hits and then levels off. In fact, it starts to cascade," he said.

Back to Top Close
Xinhuanet

Spotlight: Longest U.S. gov't shutdown inflicts worse economic damage than expected

Source: Xinhua 2019-01-24 00:50:52

Photo taken on Jan. 12, 2019 shows the statue of George Washington outside the Federal Hall National Memorial, a tourist attraction which is closed due to partial government shutdown, in New York, the United States, Jan. 12, 2019. (Xinhua/Wang Ying)

NEW YORK, Jan. 22 (Xinhua) -- As the partial government shutdown stretched to the second month, experts and lawmakers warned it would inflict far greater damage on U.S. economy than previously anticipated, and the longer the stalemate lasts, the more widely effects will be felt.

The record-long government shutdown began on Dec. 22 last year, after Congress failed to pass a spending bill that included more than 5 billion U.S. dollars in funding for the border wall long-promised by U.S. President Donald Trump.

The shutdown has affected a quarter of the federal government and forced 800,000 federal workers to miss their paychecks.


SLOWER ECONOMIC GROWTH

Economists said the shutdown has already taken a toll on the country's first quarter GDP, accompanied by broader economic implications.

John Williams, president of the Federal Reserve Bank of New York, said in a recent speech that he expected the shutdown to take 0.5 to 1 percentage point off the first-quarter growth depending on how long the impasse would last.

Sourabh Gupta, senior fellow at the Institute for China-America Studies, said while direct economic effects are of manageable proportions, people should be aware of the broader economic consequences flowing from the shutdown.

"The largest of these is the damage to economic confidence stemming from the reality of political incompetence displayed by the American political establishment from the president down," said Gupta.

U.S. consumer sentiment in January plunged to the lowest level in more than two years due in part to the longest partial government shutdown.

The preliminary reading of the index of consumer sentiment in January fell to 90.7 from 98.3 in the previous month, to the lowest level since October 2016, according to a survey released by the University of Michigan on Friday.

"The loss was due to a host of issues including the partial government shutdown, the impact of tariffs, instabilities in financial markets, the global slowdown, and the lack of clarity about monetary policies," Richard Curtin, chief economist of the survey, said in a statement.

The index of consumer sentiment is closely watched by economists and analysts as an indicator of future consumer behavior. Sharp declines in confidence could signal weaker consumer spending and economic growth in the months ahead.

"The extended shutdown will extract a much greater price through the imposition of an 'uncertainty tax' on the economy, fading business and consumer confidence and the disruption of commerce indirectly linked to the basic functioning of government," said Joseph Brusuelas, chief economist at RSM US LLP.


VOLATILE FINANCIAL MARKETS

"The next two years of divided government in Washington D.C. is just a beginning. So markets are going to have to brace for a long period of volatility and incompetence which could easily impact the credit rating of the U.S., as well as the recession-risks arising thereof," said Gupta.

U.S. stock markets finished 2018 with their worst performance in a decade, as investors fretted over fears of a monetary policy mistake by the Fed, increasing trade frictions, the ongoing federal government shutdown, and potential signals of slowing global economic growth.

The Dow and the S&P 500 indexes slid 5.6 percent and 6.2 percent in an annual drop respectively, both notching their biggest annual losses since the 2008 financial crisis. The Nasdaq lost 3.9 percent in 2018, also experiencing its worst year in a decade.

The shutdown has resulted in the omission of about a dozen major data releases so far, including figures related to housing, trade and consumer spending. Investors were worried that even after the government reopens, it would take months for government departments to return to a normal schedule.

Analysts said the policy uncertainties in Washington D.C. was the least thing the market wanted and the data absence added to it.

Meanwhile, the IMF in its most recent report cited the ongoing U.S. government shutdown as a newly introduced perturbation to domestic markets, noting that the shutdown "further weighed on financial sector sentiment toward year-end."


MULTIPLE INDUSTRIES AFFECTED

The shutdown is harming the business community, according to the U.S. Chamber of Commerce, as the process of initial public offerings is delayed and the review of mergers and acquisitions is suspended, among others.

As the Department of Homeland Security sent many of its workers home, U.S. companies and employers were not able to check the immigration status of their potential hires.

Those who opened the government's E-Verify website were greeted by a red banner on the home page saying "due to the lapse in federal funding, this website will not be actively managed. E-Verify and E-Verify services are unavailable."

For the country's farmers, the loss of crucial loans, payments and other services due to closed local farm service agency offices were cutting off their lifeline. Everything from trade bailout checks to loans for low-income residents in rural areas have all come to a standstill. Many were worried that they won't be able to have enough money for food, let alone farming.

For city dwellers, life during government shutdown has also been tough.

Data showed that as thousands of employees from the Department of Housing and Urban Development were furloughed, more than 1,100 federal housing assistance contracts that expired in December or are set to expire in January were not able to be renewed. That translated into 40,000 households nationwide to be affected.

Meanwhile, there was the serious concern that the federal Supplemental Nutrition Assistance Program (SNAP), also known as food stamps, will be cut in March.

According to Center on Budget and Policy Priorities, about 15 million households, which include about 30 million people, could experience a gap between monthly SNAP payments of more than 40 days. More than 4 million low-income households, including 8 million people, could experience a gap of more than 50 days.

In New York, the longest-ever federal government shutdown has already turned into a full-blown crisis where social benefits, transportation and civil cases were all affected.

Starting from March 1 -- if the shutdown still exists by then -- New York City will lose 500 million dollars in federal support every month, which will directly affect 2 million residents, Mayor Bill de Blasio warned.

"This is not a crisis that just hits and then levels off. In fact, it starts to cascade," he said.

010020070750000000000000011100001377689801
极速快3 大发app 凤凰彩票app 乐发iv游戏平台 凤凰彩票大厅 乐发彩票 乐发彩票app下载 大发彩票 乐发v官网 乐发lll 乐发lv入口 乐发iv首页 乐发ll登录 凤凰彩票大厅 乐发官网 乐发ii下载入口 乐发ll 乐发v平台 乐发v官网 乐发lll 乐发lv入口 乐发iv首页 乐发ll登录 乐发lv 乐发lll安装 乐发lv 乐发登录入口 乐发iv游戏平台 凤凰彩票登录 网信彩票 彩神 彩神彩票官方网站 彩神彩票官网首页 彩神官方app下载安卓版 凤凰彩票登录 彩神v3 凤凰彩票app下载 彩神官方app下载安卓版 网信快三 一分快3 快三彩票购彩平台 凤凰彩票官方 快3官网 网信彩票 快3app 网信彩票平台 百姓彩票平台 网信平台官网 快3app下载 百姓彩票 每日彩票 快3app 百姓彩票 每日彩票 快3app 百姓彩票平台 幸运5分彩快3 快3彩票app下载 百姓彩票网站网址 大发10分PK10 快3下载 网信彩票平台 网信平台官网 快3彩票官网app 凤凰彩票官方 彩神彩票 大发10分PK10 彩神v3 大发彩票app下载 百姓彩票网站网址 彩神购彩平台 每日彩票 官方正规快三彩票平台 彩神彩票购彩平台 百姓彩票 凤凰彩票购彩平台 凤凰彩票app下载 彩神官方app下载安卓版 网信快三 一分快3 快三彩票购彩平台 凤凰彩票官方 彩神彩票 大发10分PK10 彩神v3 凤凰彩票登录 乐发lv 乐发∨Il 百姓彩票网站网址 乐发彩票 乐发彩票官方网站 乐发lll安装 百姓彩票网站网址 凤凰彩票app下载 大发10分PK10 乐发2 乐发app 凤凰彩票 大发彩票app 乐发登录入口 乐发ll登录 乐发v官网 乐发官网 大发彩票app下载 凤凰彩票购彩平台 彩神彩票 官方正规快三彩票平台 一分快3 百姓彩票网站网址 凤凰彩票app下载 大发10分PK10 乐发2 乐发app 凤凰彩票 大发彩票app 乐发登录入口 乐发ll登录 乐发v官网 乐发官网 大发彩票app下载 凤凰彩票购彩平台 彩神彩票 官方正规快三彩票平台 1分快三平台 百姓彩票平台 凤凰彩票登录 幸运5分彩快3 彩神 乐发彩票 乐发 大发彩票 乐发iv游戏平台 乐发lv 乐发lll 乐发ii下载入口 乐发彩票官方网站 凤凰彩票官方网站 凤凰快3 彩神彩票官网首页 1分快三平台 百姓彩票平台 凤凰彩票登录 幸运5分彩快3 彩神 乐发彩票 乐发 大发彩票 乐发iv游戏平台 乐发lv 凤凰彩票app 乐发app 网信彩票平台 网信彩票平台 乐发iv游戏平台 凤凰彩票app 乐发lv 乐发彩票app下载 凤凰彩票app 网信彩票平台 乐发彩票app下载 乐发lv 乐发app 大发彩票安卓下载 大发彩票安卓下载 大发彩票 乐发彩票app下载 网信彩票平台 乐发iv游戏平台 彩神彩票 乐发彩票中心 极速快3彩票平台 人人快三凤凰 大发彩票app 大发彩票大全 乐发彩票 彩神彩票官方网站 乐发app 酷天堂彩票平台 凤凰彩票app下载 凤凰彩票大厅 凤凰彩票app 极速快3彩票平台 凤凰彩票 凤凰快3 乐发ll官网 乐发彩票中心 正规快三送彩金平台 凤凰彩票官方 乐发ll 乐发 网信彩票 彩神彩票 彩神彩票官方网站 大发彩票app 网信彩票用户 百姓快三 百姓彩票平台 乐发lv 乐发彩票app下载 彩信平台 网信彩票 乐发彩票官方网站 乐发∨Il 人人快三凤凰 凤凰彩票 凤凰快3 乐发ll官网 乐发彩票中心 正规快三送彩金平台 凤凰彩票官方 乐发ll 乐发 网信彩票 彩神彩票 彩神彩票官方网站 人人快三凤凰 乐发彩票 彩神彩票 乐发iv游戏平台 乐发彩票 大发彩票中心 凤凰彩票登录 凤凰彩票app 彩神彩票 大发彩票 乐发ll 大发彩票app 凤凰快3 凤凰彩票 彩神彩票 乐发ll 凤凰彩票 乐发lll 凤凰彩票大厅 网信彩票 彩神彩票 乐发lv 快盈彩票 乐发彩票官方网站 盈彩网投资平台 大发官网 一分时时彩 乐发lv 快3平台 凤凰快3 乐发ll 全民彩票 乐发彩票官方网站 百姓彩票 乐发彩票 大发彩票 极速快3 乐发app 大发官网 乐发lll 快3平台 凤凰快3 乐发ll 全民彩票 乐发彩票官方网站 百姓彩票 乐发彩票 大发彩票 极速快3 乐发app 彩神iv 大发彩票app 大小单双平台 一分pk10 乐发lv 快盈彩票 乐发官网 快彩彩票 百姓彩票 凤凰彩票大厅 网信彩票 乐发彩票中心 网信快3 乐发 彩神xl 三分快3 大发彩票 大发官网 乐发lll 快3平台 凤凰快3 乐发ll 全民彩票 乐发彩票官方网站 百姓彩票 乐发彩票 乐发彩票官方网站 大发彩票 乐发 分分快3 彩神vl 55世纪 55世纪 凤凰快3 乐发彩票 乐发lv welcome凤凰彩票 乐发ll 1分快3 彩神 彩神ll 1分快3官网 1分快3的平台 welcome凤凰彩票 三分快3 彩神x 彩神vl 凤凰彩票 彩神xl 大发彩票 凤凰彩票大厅 乐发官网 乐发ll 乐发lll 乐发lv 大发彩票app 大发彩票 乐发 乐发彩票 乐发彩票中心 凤凰快3 乐发彩票 彩神xl 腾讯快3 大发彩票 彩神xl 大发彩票 乐发彩票 大发彩票app 快3平台 乐发 1分快3 乐发彩票 彩神x 凤凰快3 彩神xl 彩吧助手 大发彩票app 快3平台 大发排列3 彩神iv 彩神vl 乐发IV 彩神x 一分pk10 大发排列3 乐发lv 快3彩票 乐发app下载 三分快3 快三平台助手 乐发彩票ll 彩神iv 乐发lll下载 盈彩网投资平台 乐发Ⅲ 一分pk10 凤凰彩票 乐发Vll 大发官网 乐发ll 大发彩票 乐发1 凤凰快3 彩神vl 乐发lx 百姓彩票 乐发VI 彩神x 乐发IV 极速快3 乐发 凤凰快3 网信快3 乐发lv 快3彩票 乐发app下载 三分快3 快三平台助手 乐发彩票ll 彩神iv 乐发lll下载 盈彩网投资平台 乐发Ⅲ 凤凰彩票大厅 乐发lv 乐发lv 乐发lv 凤凰彩票 大发彩票 大发彩票 凤凰彩票 乐发lv 凤凰彩票 凤凰彩票 乐发lv 乐发ll 凤凰彩票app下载 凤凰彩票 凤凰彩票 乐发lv 乐发ll 凤凰彩票app下载 凤凰彩票 凤凰彩票 乐发lv 彩神x 乐发 乐发ll 极速快3 乐发lv 乐发彩票中心 快3彩票 凤凰彩票大厅 彩神x 凤凰彩票app 分分快3 网信彩票 网盟彩票 凤凰彩票 百姓彩票 乐发 快彩彩票 乐发彩票 快3平台 百姓彩票 大小单双平台 凤凰快3 彩神xl 一分pk10 乐发lv 三分快3 大发彩票 乐发彩票 快3平台 百姓彩票 大小单双平台 凤凰快3 彩神xl 一分pk10 乐发lv 三分快3 大发彩票 极速快3 乐发ll 网信彩票 乐发lv 全民彩票 凤凰彩票app下载 快盈彩票 大发彩票app 大发官网 凤凰彩票 彩神iv 大发彩票 网信快3 凤凰彩票 百姓彩票