Just a few days into the "Schumer shutdown," and the liberal media is already trying to use it to attack the Trump economy. CNN is warning that the current shutdown could do serious economic damage, even while acknowledging that past shutdowns have had little to no impact on the economy. The difference this time, they claim, is the "fragile" state of the economy in 2025. The CNN report specifically worries about federal layoffs, which President Trump has threatened if the Democrats continue to prolong the shutdown. "Permanent layoffs in the federal government would raise the risk of more long-lived effects, forcing investors and economists to rethink the damage to the US economy," says the report.
The only problem with these ominous warnings is the actual economic experts aren't buying them. The stock market has shrugged off the current shutdown, and economists say it won't have much impact on average Americans unless it drags on for months. "There's always fearmongering, especially on the left, when government shuts down, given that they believe government is what creates wealth and economic growth," says Vance Ginn, economist with Ginn Economic Consulting. "But in fact the private sector is what produces wealth and economic growth."
Ginn doesn't expect this shutdown to have any major impact on the economy, save for some federal workers who may temporarily lose pay. But it could end up as a net positive for the Trump administration if it helps them further shrink the size of government. "There's a lot of misconceptions about what happens during a shutdown, and in historic examples of these types of shutdowns there hasn't been a huge economic hit," says Ginn. "But it really allows for more focus on what I think there should be, and that is on the amount of government spending and national debt we're racking up."
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