‘Layoffs Will Start’ if Trump Shutdown Talks Stall, Warns Hassett
The possibility of another U.S. government shutdown has raised concerns about job losses and economic instability. Kevin Hassett, Chairman of the White House Council of Economic Advisers, warned that layoffs could begin if President Donald Trump decides negotiations over the shutdown have reached an impasse.
The Border Wall Funding Standoff
The shutdown threat stems from a familiar clash over funding for a border wall along the U.S.-Mexico border. President Trump has demanded $5.7 billion for the project, while Democrats have refused to allocate the funds. This standoff previously led to a 35-day partial government shutdown in December 2018—the longest in U.S. history. With negotiations once again at a stalemate, fears of another shutdown are growing.
Economic Consequences of a Prolonged Shutdown
During a recent interview, Hassett emphasized the potential economic fallout of a prolonged shutdown. “If the president decides that the talks have stalled and that we’re not going to get a deal, then there will start to be layoffs,” he said. “The longer this goes on, the more likely it is that we’ll see significant disruptions in the economy.”
The U.S. economy, already facing challenges from the trade war with China and global economic uncertainty, could be further destabilized by a shutdown. Federal workers, who endured furloughs and unpaid work during the last shutdown, would be among the first to feel the impact.
Ripple Effects Beyond Federal Workers
Hassett highlighted that a shutdown would have broader implications for the labor market. Hiring plans could be disrupted, infrastructure projects delayed, and businesses dependent on federal contracts could face uncertainty. “When the government shuts down, it doesn’t just affect government employees,” he noted. “It affects everyone who interacts with the government in any way.”
Political Stakes Ahead of the 2020 Election
The shutdown impasse also carries significant political ramifications. With the 2020 presidential election approaching, both parties are acutely aware of the stakes. Trump has framed the border wall as a national security priority, while Democrats criticize it as costly and ineffective. The deadlock underscores the deep ideological divide between the two parties.
What’s Next?
As the next funding deadline approaches, pressure is mounting on both sides to reach a compromise. Hassett’s warning serves as a stark reminder of the potential consequences—not just for policymakers, but for millions of Americans. “Nobody wants to see layoffs,” Hassett said. “But if we can’t get a deal, that’s the reality we’re facing.”
The nation now waits to see if a resolution can be reached to avoid another shutdown and its far-reaching impacts.
