In a stark economic warning that has sent ripples through Washington, Kevin Hassett, former chief economic advisor to Donald Trump, has predicted devastating consequences if the ongoing US government shutdown continues unchecked.
Economic Domino Effect Feared
Hassett, who chaired the Council of Economic Advisers during the Trump administration, expressed grave concerns about the shutdown's potential to trigger a domino effect across the American economy. The situation could rapidly escalate from a political standoff to a full-blown employment crisis, with federal workers and contractors facing immediate financial peril.
Contractors Most Vulnerable
According to Hassett's analysis, government contractors represent the most vulnerable sector. "These businesses operate on tight margins and cannot sustain prolonged payment delays," he explained. Unlike federal employees who typically receive back pay after shutdowns conclude, contractors have no such safety net.
Historical Precedent Points to Trouble
The former advisor drew parallels with previous shutdowns, noting that each day of gridlock amplifies the economic damage. Small and medium-sized enterprises relying on government contracts would be the first to make difficult staffing decisions, potentially leading to cascading job losses throughout the economy.
Political Stalemate, Real Consequences
As Democrats and Republicans remain deadlocked over funding bills, Hassett's warning serves as a sobering reminder that political battles have tangible human costs. The longer the impasse continues, the greater the risk of triggering the very layoffs he predicts.
The economic advisor's comments come at a critical juncture, with no immediate resolution in sight and federal workers already feeling the pinch of missed paychecks.
