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11: Mounting Shutdown Costs and a Knife’s Edge Economy
As the government shutdown drags on, the economic and political costs are mounting. John W. Diamond explains the impacts for workers, markets, and economic policymaking. Meanwhile, the U.S. economy is still expanding. But the tug-of-war between demand and supply shocks — notably, declining immigration and President Donald Trump’s tariff policies — amount to a fragile equilibrium.
This conversation was recorded on Oct. 15, 2025.
Mentioned:
Follow John Diamond on X (@jw_diamond) and LinkedIn.
You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.
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By Rice University’s Baker Institute for Public PolicyAs the government shutdown drags on, the economic and political costs are mounting. John W. Diamond explains the impacts for workers, markets, and economic policymaking. Meanwhile, the U.S. economy is still expanding. But the tug-of-war between demand and supply shocks — notably, declining immigration and President Donald Trump’s tariff policies — amount to a fragile equilibrium.
This conversation was recorded on Oct. 15, 2025.
Mentioned:
Follow John Diamond on X (@jw_diamond) and LinkedIn.
You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.