BUSINESS + ECONOMY

Professor: shutdown has potential to impact economy

Jan 9, 2019, 2:53 PM
U.S. government shutdown impacts economy...
The U.S. Capitol dome is seen past the base of the Washington Monument just before sunrise in Washington, Saturday, Dec. 22, 2018. A partial government shutdown is in its 19th day. (AP Photo/Carolyn Kaster)
(AP Photo/Carolyn Kaster)

SALT LAKE CITY — The longer a partial government shutdown goes on, the more analysts believe politics will influence the American economy.

University of Utah Finance Professor Scott Schaeffer says it boils down to predictability.

“Firms like certainty when making investments,” he says.

DMBA Financial Planner Shane Stewart says historically, government shutdowns have been short-term. At day 19, the current partial shutdown is the second longest in US history.

“Approximately 17 percent of our whole gross domestic product is government spending,” he observes. “So government spending technically needs to happen to have our GDP survive.”

Economists say tariffs and trade wars have not worked, historically.

“All countries see that it’s a global economy and kind of rely on each other,” Stewart adds.

When President Donald Trump was elected in November 2016, the stock market soared to a new high. Zions Bank Senior Economist Robert Spendlove says the markets liked the pro-business agenda.

“Now the Trump administration is trying to address some of the really tough issues. Renegotiating trade deals is a really tough issue,” Spendlove says. “Trying to negotiate on the budget is a really tough issue.”

Spendlove says immigration reform is crucial to the US economy.

“We’ve got a huge shortage of workers in our country,” he says, pointing out that immigrants can play a helpful role in filling that gap.

Schaeffer says Utah’s economy is connected to the US economy but should be able to weather the political storm.

“The prospects for Utah remain very, very bright,” Schaeffer says.

 

Today’s Top Stories

Business + Economy

kia markups...
Peter Valdes-Dapena, CNN Business

Kia, once the ‘value’ brand, now has the biggest price markups

On average, Kia cars and SUVs are selling for about 6% over their sticker price, according to data from Edmunds.com.
6 hours ago
intermountain healthcare...
Mark Jones

Name change coming to Intermountain Healthcare next year

In 2023, Intermountain Healthcare will change its name to Intermountain Health.
1 day ago
Inland Port Authority Plan...
Becky Bruce

The plan to build an inland port/commerce hub is on hold

The announcement comes about a week after a state audit suggested that the Utah Inland Port Authority needs a master plan.
1 day ago
Office space may look more like this work from home setup in the future in Utah...
Adam Small

Working from home associated with increase in housing prices, study finds

One reason for the increase could be the extra space needed as our homes became our offices when working from home.
1 day ago
Intermountain milestone 1 million tests...
Mark Jones

Intermountain Healthcare purchases land near Ephraim

Intermountain Healthcare has plans to develop 35 acres of land in the Ephraim area into a new hospital.
2 days ago
On Monday, David Rice was named president and CEO of Associated Food Stores. Photo credit: Associat...
Mark Jones

Associated Food Stores name David Rice as its new CEO/President

On Monday, Associated Food Stores named David Rice as its new CEO and president.
2 days ago

Sponsored Articles

a worker with a drill in an orange helmet installs a door in the house...
Price's Guaranteed Doors

Home improvement tip: Increase the value of your home by weatherproofing doors

Make sure your home is comfortable before the winter! Seasonal maintenance keeps your home up to date. Read our tips on weatherproofing doors.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
A paper reading IRS, internal revenue service is pictured...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Prescription opioids can be disposed of during National Prescription Take Back Day...
Know Your Script

Prescription opioid misuse | How to protect your family from the opioid epidemic

Studies have shown that prescription opioid misuse has increased since COVID-19. So what do you need to know about these opioids?
national heart month...
Intermountain Healthcare

National Heart Month: 5 Lifestyle Changes to Make Today to Keep You Heart Healthy

Heart disease is the leading cause of death for both men and women. One person dies every 36 seconds in the United States from cardiovascular disease
Professor: shutdown has potential to impact economy