The longest partial federal government shutdown in American history may be over, but the economic consequences for people across the country endure. Decades of conservative rhetoric about smaller government were tested in real time, with disastrous costs for individuals, families, and businesses. On Tuesday night, President Donald Trump will deliver a State of the Union address that is sure to pass the blame for his shutdown onto others while he takes credit for an economy that has been growing for nine years. In his two years in office, President Trump has done everything in his power to set American workers and families back and place the country on the road to a low-wage, high-cost economy in which a few hands hold all the economic power. The 35-day shutdown is just the latest in a series of actions that hurt everyone except the wealthy and those with political connections.
Trump’s shutdown cost American families
The shutdown is the latest example of the Trump administration’s disregard for American workers and families. The Congressional Budget Office calculated that the five-week shutdown cost the U.S. economy $11 billion, $3 billion of which will never be recouped. But for millions of Americans, the shutdown’s effect on their paychecks was more apparent. About 800,000 federal workers were furloughed or worked without pay, and as many as 1.2 million contractors felt the impact—and may not receive back pay. In addition, shutdowns have a disproportionate effect on black workers and families. In fact, the proportion of federal workers who are black women is twice as high in the federal government as it is in the greater civilian workforce. At the beginning of the shutdown, about half of all federal workers were still required to show up to work without pay; yet that number grew as the Trump administration played favorites with agencies in response to lobbying from some industries.
Beyond the shutdown’s effects on the nearly 2 million workers employed by the federal government or working as contractors, there are economic consequences that result from closing various parts of the government that help Americans in their everyday lives. For example, elderly renters in rural areas rely on the Department of Agriculture for rental assistance while homeless veterans rely on the Department of Housing and Urban Development for similar assistance. Moreover, as a result of the shutdown, community organizations that help families afford food or stay safe while fleeing domestic violence dealt with funding uncertainty and had to limit support or tap into emergency funds. Meanwhile, small-business owners who had planned to expand into new areas or hire new staff were unable to receive loans from the Small Business Administration. And delays in reports and forecasting about agricultural crops and fisheries have constrained farmers’ ability to prepare for the spring season. Larger businesses even suffered consequences: The Securities and Exchange Commission (SEC) delayed initial public offerings (IPOs), limiting businesses’ ability to raise capital as planned. Government funding will expire again next week, and it is imperative that the president does not shut the government down this time.