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Watch CNBC's full interview with White House National Economic Council Director Kevin Hassett
Youtubeยท2025-10-06 13:07

Government Shutdown and Economic Impact - The government shutdown has lasted six days with no progress in negotiations, raising concerns about potential layoffs if the situation continues [1][3] - The economic cost of the shutdown is estimated at approximately $15 billion per week, equating to about 0.1% of GDP [17] - Current GDP growth is reported at 3.8%, with retail sales up 6% year-over-year, indicating a booming economy despite the shutdown [18] Political Dynamics - There is a perception that Democrats lack leverage in negotiations, which may lead to a failure to reach a resolution [2][5] - The ongoing shutdown is viewed as a political maneuver by Democrats, who are accused of using it to gain leverage over Republicans regarding healthcare subsidies [11][15] - Moderate Democrats are reportedly dissatisfied with the current leadership and may seek bipartisan solutions to reopen the government [33][34] Healthcare and Subsidies - The discussion highlights the contentious nature of Obamacare and the expiration of COVID-related subsidies, which are seen as politically motivated rather than purely economic decisions [9][11] - There is a concern that the high subsidies under Obamacare are unsustainable and that their expiration is necessary due to budget constraints [12][15] - The potential for negotiations over healthcare subsidies may arise once the government is reopened, but current priorities are focused on keeping the government operational [19][20] Trade and Agriculture - The administration is considering using tariff revenue to support farmers affected by trade tensions, particularly with China, which has significantly reduced purchases of U.S. soybeans [28][29] - Ongoing trade negotiations with China are still in progress, despite the distractions caused by the government shutdown [32] Government Efficiency - Efforts to make government operations more efficient are ongoing, with a reported reduction of over 200,000 government positions [26] - The current situation may accelerate these efficiency efforts if the government remains closed and funding is not appropriated [27]