US Economy Loses $15 Billion Weekly Due to Government Shutdown

SadaNews - As the US government shutdown enters its sixth week, its repercussions have begun to extend beyond the bounds of administrative paralysis, transforming into an unprecedented economic and political crisis in the history of the United States.

As daily losses escalate and vital social support programs are disrupted, President Donald Trump has sharply criticized his Republican Party, blaming the shutdown for recent local election losses, while Bloomberg has warned of deep financial impacts that may weaken growth and leave "permanent scars" on the US economy.

With rising public anger and eroding trust in institutions, Washington seems to be mired in a political deadlock that threatens to undermine the status of the world's largest economy.

"The shutdown has harmed everyone and weakened the Republicans"

Trump stated during a breakfast meeting with Republican senators at the White House, according to Politico, that "the shutdown was a major negative factor for the Republicans," adding, "It was an exciting night, and we learned a lot from it, but it is clear that it was not good for either side."

The American president acknowledged that his party's loss in the gubernatorial races in Virginia and New Jersey, as well as in the New York City mayoral race, was partly due to "the weak mobilization of its voter base," according to the poll results he referenced during the meeting.

Trump added, "The polls say that my absence from the ballot adversely affected turnout; I don't know how true that is, but I take it as a compliment that they say this."

Call to Eliminate the Filibuster Rule

Trump used the meeting to reiterate his call to eliminate the filibuster rule that prevents passing decisions in the Senate without a 60-vote majority, saying, "If we don't eliminate it now, the Democrats will do it when they return to power. That would be a grave mistake."

However, his call was met with lukewarm responses from the majority of Republicans in the chamber, who believe that such a move could undermine legislative balance and create a dangerous political precedent.

Catastrophic Economic Effects of the Shutdown

As the political crisis in Washington continues, Bloomberg revealed that the current government shutdown has become the longest in US history, surpassing the previous record of 35 days set in 2019.

The agency stated that the shutdown has cost the US economy between $10 to $30 billion weekly, according to multiple estimates, indicating that losses "average around $15 billion weekly."

Losing trust in state institutions has become one of the most serious outcomes of this extended shutdown in America without a clear end in sight (Anadolu).

Bloomberg explained that the US economy "can no longer absorb such shocks easily as it used to in the past" due to a weak labor market, increasing public concern about inflation, and declining consumer confidence.

It quoted Barclays economist Jonathan Millar as saying, "Historically, government shutdowns have not caused economic disasters, but this time is different."

Direct Losses for Families and Businesses

The Congressional Budget Office estimates that the continued shutdown until the end of November could reduce the growth rate in the fourth quarter by about two percentage points, while no less than $14 billion of GDP will not be recovered even after the government reopens.

On the social level, Bloomberg notes that nearly 42 million Americans have lost or will lose full access to food assistance under the aid program known as "SNAP."

The Trump administration has announced - in response to a court ruling - that it will use $4.65 billion from the emergency fund to cover only half of the monthly aid, which has raised widespread concern among low-income families.

Melissa Lewis, an unemployed mother from Tennessee, said: "I have never felt such incapacity to feed my children. The government is quarreling, and we are the ones starving."

Repercussions on the Labor Market and the Private Sector

According to Bloomberg, nearly 650,000 federal employees have been temporarily laid off without pay, which may increase unemployment to 4.7% from 4.3% previously.

In the private sector, approximately $24 billion of federal contracts have been frozen, and 4,800 small businesses have stopped obtaining loans totaling $2.5 billion that were designated for expanding their operations through the Small Business Administration.

Neil Bradley, Vice President of the US Chamber of Commerce, stated, "Businesses are beginning to incur cumulative losses that affect their ability to expand and hire."

Pressure on Both Democrats and Republicans

Politico reported that the recent election results have given momentum to Senate Democrats who refuse to pass a new budget without extending support under the healthcare law.

The newspaper quoted Democratic advisor Jared Leopold as saying, "These results should send a shocking message to the Republicans: they cannot ignore public anger after the shutdown caused real economic pain for Americans."

Conversely, Republican advisors believe that Democrats are using the crisis to strengthen their political position, as veteran Republican strategist Liam Donovan told Politico: "The results give Democrats a chance to declare victory and end the crisis on their terms, but success makes any solution more politically complicated."

A Crisis of Trust Threatening the Markets

Bloomberg warned that if the shutdown continues into the shopping season in December, it may "exacerbate the decline in consumer confidence and affect spending during the holiday season," as confirmed by Moody's Chief Economist Mark Zandi, who said, "Every additional week of shutdown increases the chances of recession and harms growth in 2026."

Amid the ongoing stalemate between Congress and the White House, the American government crisis has transcended the boundaries of politics to become a direct threat to the stability of the US economy, according to Bloomberg's description, which concluded that the impact this time will "not be temporary as before, but will leave permanent scars on the confidence of investors and the budgets of families and businesses alike."

Widespread Chaos

In the backdrop of the government shutdown, airports are experiencing a standstill, as the shortage of air traffic controllers leads to flight delays and cancellations, according to the Agence France-Presse.

US Transportation Secretary Sean Dunphy said in a press conference held in Philadelphia: "If you extend (the crisis) for another week from today, Democrats, you will see widespread chaos... and many flight delays."