We told you yesterday that the White House’s top economist said the partial government shutdown could wipe out GDP growth in the first quarter if it lasts through March. On Thursday, the Committee for a Responsible Federal Budget provided another way to think about the blow the shutdown is delivering to the economy: “The current government shutdown has lasted long enough to temporarily erase all the positive stimulus effects of recent major legislation,” CRFB said.
That means that the economic benefits from the tax cuts and increased federal spending have essentially been lost over the last month or so.
“While this economic hit is short-term, it comes with no upside,” CRFB said, adding that “the economic cost of the shutdown is both real and senseless.”
