The Conversation with Dasha Burns “They're causing real harm”: Kevin Hassett on the Dem shutdown standoff
Oct 3, 2025
Kevin Hassett, the former Chair of the White House National Economic Council, shares his insights on the economic fallout from the government shutdown, emphasizing the urgency to reopen government and the positive effects of tariff policies amidst controversy. Kevin O'Leary, Shark Tank judge and investor, discusses his bullish outlook on TikTok while critiquing federal investment in Intel. Both guests delve into the political strategies behind the shutdown, the impacts on the economy, and the importance of Fed independence, providing a multifaceted view of current economic challenges.
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Shutdowns Have Quick Measurable GDP Costs
- Hassett estimates each week of a shutdown costs about 0.1% of GDP and roughly 0.5% over a month.
- He warns furloughed workers face immediate hardship even if later made whole.
Open Government First, Negotiate Later
- Hassett urges Democrats to accept a clean continuing resolution to reopen government quickly.
- He advises using the additional time from a CR to negotiate policy rather than keep agencies closed.
Shutdown Could Accelerate Federal Cuts
- Hassett says permanent layoffs are legally on the table during prolonged funding gaps and fit an agenda to shrink government.
- He frames workforce reductions as both a consequence of shutdown and a continuation of efficiency goals.