The Playbook Podcast From 'The Conversation': 'They're causing real harm': Kevin Hassett on the Dems' shutdown standoff
Oct 5, 2025
Kevin Hassett, director of the National Economic Council and a key advisor to Trump, discusses the economic fallout of the government shutdown and the timeline for benefits from the recent tax cuts. He argues that tariffs have been beneficial despite some industry challenges. Meanwhile, investor Kevin O'Leary shares his thoughts on the TikTok deal and critiques government spending on Intel. Both emphasize the importance of real economic growth, while O'Leary warns against overreaching government intervention.
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Shutdown Has Immediate Economic Bite
- Kevin Hassett estimates each week of the shutdown costs about 0.1% of GDP and a month costs roughly 0.5% of GDP.
- He warns furloughed workers face immediate hardship despite eventual back pay, reducing consumption and local services.
Open Government, Then Negotiate
- Hassett urges Democrats to accept a clean continuing resolution and use the extra weeks for negotiations on policy differences.
- He frames opening the government as the patriotic and economically less harmful choice.
Past Tax Changes Validated Growth Claims
- Hassett argues the 2017 tax agenda validated its 3% growth claim with ex-post data and believes similar policies can push growth higher.
- He cites current quarter GDP estimates near 4% as confirmation of that approach.