The U.S. economy is under unprecedented stress. In 2023, announced layoffs have already reached their highest buoyancy since the onset of the COVID-19 pandemic in 2020. The nation is at an incredible moment in history. Naturally, there is more and more alarm over how a lengthy government shutdown would, among other things, affect America’s economic growth.
According to various recent accounts, the U.S. economy has been growing strong. As of the Atlanta Federal Reserve’s GDPNow tracker, GDP is estimated to have brought in an annualized 3.8% growth for both the second and now third quarter. This progress is now at risk, caught up in the ongoing federal government shutdown that has already impacted around 750,000 federal employees.
It’s another reminder of the potential fallout from continued government uncertainty, as noted by Treasury Secretary Scott Bessent. He noted that if President Donald Trump follows through on plans to permanently fire a significant number of federal workers, it could deal a blow to both the GDP and overall economic growth.
“This isn’t the way to have a discussion, shutting down the government and lowering the GDP,” – Treasury Secretary Scott Bessent
Bessent’s remarks reflect broader concerns about the government shutdown’s implications for working Americans. History has shown that the effects of any upcoming government shutdowns will lead to only minor economic growth. Specialists are cautioning a startling reversal might be just around the bend. They cite the level of layoffs and still-recovering post-COVID-19 industries as a main drivers.
As speculation swirls, Bessent shared that word will arrive on Tuesday. This announcement should provide specific information on the “significant assistance” for farmers with particular emphasis again on those in the soybean production specialty. This announcement will go a long way towards offering relief in an era of mounting economic pain.
“Senator [Chuck] Schumer, Representative [Hakeem] Jeffries, you know, they’re weak, they’re discombobulated,” – Treasury Secretary Scott Bessent