US government shutdown turns world upside down
- China – a communist country – will again have to fly the flag for free trade and globalisation at the World Economic Forum in Davos, Switzerland
What’s bad for the American economy cannot be good for the world’s. The government shutdown in Washington shows little sign of resolution, despite US President Donald Trump’s offer of a deal to Democrats to end a domestic political fight.
Every day it continues presents a greater threat to growth.
Until recently, mainstream economists were optimistic about the US economy, even as other major foreign ones are showing strains. Now they are not so confident.
Even the White House’s own economists, who make up the Council of Economic Advisers, warn that the economic damage is much worse than previously thought.
Every week of the shutdown, they now estimate, can shave 0.13 percentage of a point off their projected economic growth. If this continues, the US economy may stall and even contract.
So what began as a controversy over the need to build a border wall against illegal immigrants could become a genuine crisis with global impact.