U.S. government shuts down again because House Democrats refuse to spend $5 billion on the border wall.

Amy Hamilton

2019-01-19 12:38:00 Sat ET

U.S. government shuts down again because House Democrats refuse to spend $5 billion on the border wall that would give President Trump great victory on his best-known policy. No other OECD democracy has such abrupt government shutdowns. Should the current U.S. government shutdown be about policy differences, House Democrats would try to achieve a compromise deal with the Trump administration.

Nevertheless, this congressional standoff is about presidential authority. President Trump must win this fight; otherwise, he would allow House Democrats to constrain his presidential power. A key concern is that President Trump may use his national emergency power to build the southern border wall. In this worse-case scenario, the eventual degradation of good government may continue.

In reality, the current U.S. government shutdown happens not because America is in turmoil: the country is not at war; the economy operates near full employment; and even Fed Chair Jerome Powell praises the robust economic outlook with low inflation and high productivity growth. The current government shutdown happens because President Trump needs to fulfill one of the most controversial campaign promises that his fervent followers favor. When the U.S. government reopens, both Congress and the Trump administration can revisit the comprehensive issues of border security and immigration reform without having to inflict financial pain on public employees in the specific form of furlough or work without pay.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

President Trump indicates that he would consider an interim Sino-American trade deal in lieu of a full trade agreement.

Apple Boston

2019-10-03 17:39:00 Thursday ET

President Trump indicates that he would consider an interim Sino-American trade deal in lieu of a full trade agreement.

President Trump indicates that he would consider an interim Sino-American trade deal in lieu of a full trade agreement. The Trump administration defers high

+See More

President Trump approves a phase one trade agreement with China.

Joseph Corr

2020-01-01 13:39:00 Wednesday ET

President Trump approves a phase one trade agreement with China.

President Trump approves a phase one trade agreement with China. This approval averts the introduction of new tariffs on Chinese imports. In return, China s

+See More

Goldman Sachs takes a $5 billion net income hit that results from its offshore cash repatriation under the Trump tax law.

Charlene Vos

2018-01-02 12:39:00 Tuesday ET

Goldman Sachs takes a $5 billion net income hit that results from its offshore cash repatriation under the Trump tax law.

Goldman Sachs takes a $5 billion net income hit that results from its offshore cash repatriation under the new Trump tax law. This income hit reflects 10%-1

+See More

To secure better E.U. economic arrangements, Jeremy Corbyn encourages Labour legislators to back a second referendum on Brexit.

Olivia London

2019-06-17 11:25:00 Monday ET

To secure better E.U. economic arrangements, Jeremy Corbyn encourages Labour legislators to back a second referendum on Brexit.

To secure better economic arrangements with European Union, Jeremy Corbyn encourages Labour legislators to back a second referendum on Brexit. In recent tim

+See More

Federal Reserve Chair Jerome Powell announces the monetary policy decision to lower the federal funds rate by a quarter point to 2%-2.25%.

Chanel Holden

2019-09-07 17:37:00 Saturday ET

Federal Reserve Chair Jerome Powell announces the monetary policy decision to lower the federal funds rate by a quarter point to 2%-2.25%.

Federal Reserve Chair Jerome Powell announces the monetary policy decision to lower the federal funds rate by a quarter point to 2%-2.25%. This interest rat

+See More

Fed Chair Jerome Powell hints slower interest rate increases because the current rate is just below the neutral threshold.

Jacob Miramar

2018-12-07 11:35:00 Friday ET

Fed Chair Jerome Powell hints slower interest rate increases because the current rate is just below the neutral threshold.

Fed Chair Jerome Powell hints slower interest rate increases because the current rate is just below the neutral threshold. NYSE and NASDAQ share prices rebo

+See More