Washington: White House National Economic Council Director Kevin Hassett stated that the ongoing U.S. government shutdown has had a more severe impact on the American economy than initially anticipated, primarily due to its extended duration.
According to Yemen News Agency, Hassett, in an interview with Fox Business, mentioned that the economic impact was much more serious than expected because the shutdown has persisted longer than anticipated. Earlier this week, White House Press Secretary Karoline Leavitt highlighted that the U.S. tourism sector has already incurred a loss of $4 billion as a result of the government closure.
Leavitt attributed the losses in America's tourism economy to the prolonged shutdown, which she referred to as the "Democrats' shutdown" during a press briefing. She further noted that major U.S. airlines, including United, Delta, American Airlines, and Southwest, are supporting a Republican bill intended to temporarily fund the government and end the shutdown.
The shutdown began in October after Congress did not pass the budget for the new fiscal year, which starts each October. A government shutdown stops the operations of key federal agencies that rely on congressional funding, a situation that has repeatedly occurred in recent years, paralyzing most government functions except essential services such as healthcare and postal operations.
Former President Donald Trump previously suggested that the shutdown could be used as a means to reduce the number of federal employees. Meanwhile, the National Economic Council has warned that the continued closure might cost the U.S. economy around $15 billion per week.