Professor: shutdown has potential to impact economy
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
- Two employees found unconscious at Northrop Grumman, died later at hospital
- When it’s this cold, keep your pipes from freezing. Here’s how.
- Monday morning’s cold temperatures nearly set new records
- Police investigating fatal auto-pedestrian crash in Salt Lake City
- Suspect still at large after double homicide in Taylorsville
- Herd of elk pushed away from I-80 and moved back into mountains
- South Jordan could see new housing development
- Citing ‘dangerously low’ overnight temps, county opens emergency shelter
- The road home is in need of donations and volunteers this winter
- Governor Spencer Cox signs transgender bill, releases statement