- Sep 14, 2011
- 63,947
- 9,979
- 2,040
The Insane Cost of the Border Wall if the Government Shuts Down
Paul J. Lim
Aug 25, 2017
follows through on his promise and shuts down the government to force Congress to build a wall along the Mexican border, his controversial pet project could end up costing ten times more than current estimates, in real terms.
Here's why: In the past 18 federal government shutdowns since 1976, the stock market has lost 0.6% of its value, on average, according to an analysis by LPL financial. (In the handful of occasions in which Washington was shut down despite being controlled by a single political party, stocks fell more than 2% on average).
A 0.6% loss may not sound like much, but given that the total U.S. market is now worth around $25 trillion, that works out to a loss of $150 billion in real wealth.
Now, add to that what a shutdown could cost the actual economy.
The last time the government was forced to close — in 2013, when a divided Congress could not agree with then-President Obama on a budget due to battles over Obamacare funding — the showdown cost the domestic economy $24 billion and reduced that quarter's GDP growth by more than half of a percentage point, according to Standard & Poor's.
Next, factor in the cost of actually building the wall.
~~~~~
Here’s a breakdown of some of the economic cost by our calculations:
As always, there's more at the two separate links.
The most insane part of this is that the wall wo't actually accomplish anything.
And, RWNJ trumpkins are all so wealthy, they don't care about pino's crazy plans. And, since pino and other 1%'s won't have to pay any of it, they're not concerned either.
Paul J. Lim
Aug 25, 2017
follows through on his promise and shuts down the government to force Congress to build a wall along the Mexican border, his controversial pet project could end up costing ten times more than current estimates, in real terms.
Here's why: In the past 18 federal government shutdowns since 1976, the stock market has lost 0.6% of its value, on average, according to an analysis by LPL financial. (In the handful of occasions in which Washington was shut down despite being controlled by a single political party, stocks fell more than 2% on average).
A 0.6% loss may not sound like much, but given that the total U.S. market is now worth around $25 trillion, that works out to a loss of $150 billion in real wealth.
Now, add to that what a shutdown could cost the actual economy.
The last time the government was forced to close — in 2013, when a divided Congress could not agree with then-President Obama on a budget due to battles over Obamacare funding — the showdown cost the domestic economy $24 billion and reduced that quarter's GDP growth by more than half of a percentage point, according to Standard & Poor's.
Next, factor in the cost of actually building the wall.
~~~~~
Here’s a breakdown of some of the economic cost by our calculations:
- About $3.1 billion in lost government services, according to the research firm IHS
- $152 million per day in lost travel spending, according to the U.S. Travel Association
- $76 million per day lost because of National Parks being shut down, according to the National Park Service
- $217 million per day in lost federal and contractor wages in the Washington D.C. metropolitan area alone
As always, there's more at the two separate links.
The most insane part of this is that the wall wo't actually accomplish anything.
And, RWNJ trumpkins are all so wealthy, they don't care about pino's crazy plans. And, since pino and other 1%'s won't have to pay any of it, they're not concerned either.
