The United States government's shutdown is costing the economy more than it is asking for as a new report estimated that the 31-day snub costs around $6, an amount ironically very close to Donald Trump's budget on his southern border wall proposal.
According to CBS News, S&P Global's U.S. chief economist, Beth Ann Bovino, said the government shutdown has already added up to $1.2 billion and this isn't the end yet. By the end of the shutdown, damages could reach up to approximately $6 billion.
Bovino predicted that if the government refuses to open by the end of this week, it will be a huge blow to the U.S. economy. Damages are expected to increase as the days pass. "The longer this shutdown drags on, the more collateral damage the economy will suffer," Bovino wrote on her research paper.
The U.S. shutdown kicked off December 22 and since then, thousands of workers from different industries haven't been paid. This caused inefficient productivity in many factories and offices across the country.
While federal government employees will receive compensation once the shutdown ends, there are around 4 million people in private companies that will not get their back pay.
Aside from federal workers, private-owned businesses are also getting a slice of the bitterness, particularly national site service providers. Americans have started canceling trips to national parks and other monuments or museums that have also closed doors to the public since the shutdown.
The U.S. government shutdown stemmed from a bitter war between the U.S. president and Congressional Democrats. Trump has reiterated that he wants his southern wall built but Democrats are completely against the idea. Both sides came to the political deadlock that has become the longest-standing shutdown in history.
Other firms expressed concerns regarding the issue. According to Al Jazeera, Moody's Analytics predicted that financial markets will also suffer from the shutdown if it brews on until February.
While federal workers can get their money back, the story changes for private contractors who could lose their jobs permanently if the government doesn't reopen by the end of this month.
From the federal government sect to private businesses, the U.S. government shutdown could result in a ripple effect that will further cost the country's economy, analysts pointed out.
Some experts also stated that if President Trump and Congressional Democrats do not reach an agreement soon, the shutdown's impact could extend beyond the United States. Import and export markets could potentially feel the impact if the U.S. government's partial shutdown drags on for a couple weeks more.
