Fox News Dismisses Top Economists On Impact Of GOP-Led Shutdown

| by Sarah Fruchtnicht

Fox News readily dismissed a survey of 41 economists who said they are less optimistic about growth prospects in the wake of the 16-day government shutdown.

USA Today found that 63 percent of the economists they surveyed believe brinksmanship is hurting the economy.

"We're falling down a fiscal flight of stairs and we're bouncing from one step to the next, one crisis to the next," Sean Snaith, an economist at the University of Central Florida, told USA Today.

Despite the wide range of reports on damage to the economy since the government was shut down on Oct. 1, Fox News says it’s “much ado about nothing.”

Jim Lacamp, a Senior Vice President and Portfolio Manager with Macroportfolio Advisors, told “Your World with Neil Cavuto” on Monday that "a two-week shutdown on a small part of the government has very little to do with economic development."

"This is much ado about nothing,” he added.

"In a multi-trillion dollar economy, you're talking about something that is a rounding error to a rounding error when you talk about this government disruption," Cavuto surmised. "A reminder everyone: multi-trillion economy, teeny, teeny, teeny little shutdown."

According to Standard & Poor’s, the shutdown sliced 0.6 percent off fourth-quarter GDP growth and cost the economy $24 billion. There was about $3.1 billion lost from government services, according to the research firm HIS.

The New York Times reports the shutdown “led to the biggest plunge in consumer confidence since the collapse of Lehman Brothers in 2008.” Brinksmanship on the debt ceiling has raised short-term borrowing cost.

"Even with a deal to avoid a default, the damage has been done by the fact that we have had a debate questioning whether the U.S. will pay back its debt," Laurence D. Fink, the chief executive of the money manager BlackRock told the Times.

The U.S Travel Association reported a loss of $152 million per day in travel spending. Shuttered national parks lost $76 million each day.

Sources: USA Today, Media Matters