The recent suspension of part of the US government due to the termination of budget financing has done without macroeconomic consequences. Such statement was made on Monday at a briefing for journalists by the head of the National economic Council the White House Lawrence Kudlow. He flatly contested the findings of some experts about the tangible consequences of the so-called shutdown to the US economy.
From the point of view of Kudlow, “the key issue” to the occurrence which led another suspension of the activities of the government because of budget wrangling between the ruling Republican and opposition Democratic parties, became the unpaid leaves of several hundreds of thousands of civil servants. Many of them in connection with the incident actually remained for several weeks without means of livelihood. “I think these individual hardships were the biggest problem,” said the head of the National economic Council. “As for macroeconomics, I don’t think it [that is, the current budget crisis in Washington] was a factor, I just don’t think so,” Kadlow said.
“The state of the [US] economy seems extremely strong to me and my colleagues [the head of the White H ouse Council of economic advisers] Kevin Cassett and others. I don’t think it [“shutdown”] it was devastating [for economic growth],” he said Kudlow. In this regard, he assured that the economic indicators remain “incredibly strong”. “I think we are still moving with a 3% growth trend [in annual terms], and I am proud of it,” said the adviser to the US President.
He also disagreed with the conclusions of the Budgetary control of Congress, according to which the American economy lost as a result of the “shutdown” of at least $ 3 billion. “I at the moment I will not admit” — said Kudlow.
On Friday, the White House and the US Congress finally agreed to resume funding for the government until February 15. This time the “shutdown” lasted a record 35 days.