Trumponomics Why This US Government Shutdown Is Different
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Oct 8, 2025 
Matthew Glassman, a senior fellow at the Government Affairs Institute, and Anna Wong, chief US economist for Bloomberg Economics, discuss the current government shutdown's unique political stakes and its potential economic fallout. They address how this standoff may signify a deeper struggle over presidential power and the administration’s strategic use of shutdown leverage. Wong highlights the fragile labor market's implications, while Glassman analyzes how political messaging could sway public opinion and influence outcomes.
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Shutdown As A Constitutional Clash
- Democrats view the shutdown as a deeper clash over presidential unilateral spending, not just a policy fight.
- That undermines normal bargaining because the president can rescind or impound spending deals.
Both Sides Have Incentives To Prolong
- The Trump administration sees a shutdown as an opportunity to shrink the federal workforce and increase executive control.
- That gives both parties incentives to prolong it, unlike past shutdowns where one side sought leverage alone.
High Economic Stakes From Fragile Conditions
- The economy is fragile and at a possible turning point between recovery and recession.
- Deeper cuts, unpaid backpay, or sustained uncertainty could push the economy into recession.