May 18, 2021

The closure of the US Administration may cost more than the wall, according to the S & P agency

The closure of the US Administration may cost more than the wall, according to the S & P agency

The partial closure of the Administration of the United States has meant a loss of 3,600 million dollars since its beginning on December 21 and, for another two weeks, will add 6,000 million, a cost higher than the White House requires to build the wall with Mexico, according to the agency S & P Global Ratings.

This lender states that with 15 more days of closure of the government the US economy will lose more than the 5.700 million dollars that the president of the country, Donald Trump, is asking the Democrats in the new budgets for the construction of the wall on the border south with Mexico.

In a note sent to its clients, the chief economist of the entity, Beth Ann Bovino, estimates that the partial closure of 25% of the Administration costs the country's gross domestic product 1.2 billion dollars for each week without agreement between the two main Congress parties.

Even so, warns the agency, this cost could increase as more time passes.

At the moment, it is the second longest closure in the history of the United States, only exceeded by the one that occurred during the mandate of Bill Clinton, in 1995.

However, to last another day will exceed this mark with 22 days with the Administration paralyzed.

"The impact of this closure of government has direct and indirect economic costs, indirect costs include canceled holidays to national parks, museums and monuments, or lost businesses with contractors doing work for Uncle Sam, while a short closing may not involve changes in business plans, a longer one could force a reduction in personnel, "the note said.

In addition, during these three weeks of closure, thousands of employees have seen their payroll frozen.

While they will receive the arrears once the Republicans and Democrats reach an agreement, it is not the case of the contractors, who will hardly receive their money.

"The workers who live with each payroll will have problems getting to the end of the month if this continues," explains Bovino, who warns of the problem to save, pay credit cards, mortgages or rent.

Trump refuses to accept any proposal to open the government that does not include financing for the construction of the wall on the southern border, something that the Democrats reject outright when approving the annual budgets.

The Government of Trump faces the closure of 25% of the Administration, a situation that affects some 800,000 employees who have stopped receiving their salary, and has disrupted the operation of different tourist areas or the activities of agencies that have not been assigned new resources.


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