Economic impacts of government shutdown in Georgia, South Carolina detailed in new reports

SAVANNAH, Ga. (WTOC) - The Council of Economic Advisors has provided an analysis of the economic impacts of the government shutdown in Georgia and South Carolina.

In an email from the White House Council of Economic Advisors (CEA), the organization states that government shutdown will reduce growth and increase unemployment in both states.

“CEA estimates Georgia’s Gross State Product will decline by approximately $458 million each week the shutdown extends, the equivalent of $2 billion per month while the government is shut down,” the report states.

Additionally, CEA says there may be “an increase in unemployment of about 1,400 workers in Georgia” if the government is shut down just one month.

“CEA estimates South Carolina’s Gross State Product will decline by around $188 million each week the shutdown extends, the equivalent of around $816 million per month while the government is shut down,” the analysis also says.

For unemployment in South Carolina, CEA says “there may be an increase in unemployment of about 700 workers in South Carolina under a 1-month shutdown."

“Under a government shutdown, SNAP benefits continue for approximately 30 days before facing disruption, CEA says.

”In Georgia there are around 1,356,000 total enrollees in SNAP, and an estimated 526,000 whom are children."

“In South Carolina there are around 568,000 total enrollees in SNAP, and an estimated 220,000 whom are children.”

Benefits are likely delayed for those that receive their Social Security benefits by check instead of direct-deposit.

In Georgia, there are approximately 13,200 seniors that receive their benefits by check.

In South Carolina, there are approximately 6,700 seniors that receive their benefits by check.

“Due to the government shutdown, federal funding for the Women, Infants, and Children (WIC) program stops immediately and becomes reliant on very limited local contingency funding.”

If the government shutdown is prolonged, CEA says, those reserves are likely to run out by the end of the first week.

In South Carolina, there are approximately 99,000 WIC recipients who rely on the program for nutritional support for themselves and their children.

In Georgia, there are approximately 231,000 WIC recipients.

Finally, the report addresses how a government shutdown would hurt small businesses in both states.

“Assuming equal, average distributions each month, small businesses would face delays of around $131 million in Georgia and $41 million in South Carolina under a month-long shutdown of the federal government.”

“Consumer spending from lost wages will fall by an estimated $1 billion in Georgia each month the government shutdown extends,” CEA says.

In South Carolina, consumer spending from lost wages will fall by an estimated $434 million each month the shutdown extends.

You can read the full report of the economic impacts of the government shutdown in both Georgia and South Carolina for yourself below:

Economic analysis of government shutdown in Georgia

Economic analysis of government shutdown in South Carolina