Victor Davis Hanson made a compelling case on Friday that the recent government shutdown orchestrated by the Democrats served two significant purposes. Speaking with Larry Kudlow on Fox Business, he noted, “I think the shutdown was in part not just to affect the elections recently, although it did, but we’re starting to learn that maybe they took a point or a point and a half of GDP in the fourth quarter, and I think they’ll do it again before the midterms.” This assertion highlights a strategic approach where political maneuvering intertwines with economic implications.
Kudlow, a former economist in past Republican administrations, agreed, stating that the shutdown presented a serious risk to the economy. “That shutdown will stop the 4 percent growth momentum that was already developing in Q2 and Q3. So Q4 is going to be a couple of percentage points lower,” he said. This analysis underscores a critical concern: the cascading effects of political decisions on economic growth.
The conversation hinted at a possible repeat of this tactic when funding runs out in January, and Hanson warned against underestimating the Democrats’ intentions. “I think everybody’s saying, ‘Well, they blew it. They didn’t get anything out of it.’ That’s not what they think,” he remarked, suggesting that Democrats may view the shutdown as a successful strategy to impact future elections. The implication is that the move was calculated to create economic turbulence, which they may believe aids their political ambitions.
Hanson pointed out that the approach, characterized as “policy sabotage,” could be a repeatable tactic as the 2026 elections loom. He observed, “Now, it’s a proven formula to repeat when it really matters in 2026, so I’m afraid they’re going to do it again.” This reflects a dismal forecast, indicating that political agendas take precedence over economic stability.
Both Hanson and Kudlow noted the positive trends emerging from the Trump administration’s policies, such as record highs in domestic oil production and a surge in foreign investment expected to materialize by 2026. Kudlow added context regarding tax refunds and spending initiatives tied to the “Big Beautiful Bill,” which aims to contribute billions to the economy. Such provisions aim to bolster growth and purchasing power for Americans, illustrating how economic policies can be manipulated for political ends.
The dialogue culminated in a stark assessment of the Democratic strategy. The shutdown is depicted as a deliberate effort to “throw sand in the works,” which could thwart economic progress. “They don’t care if the American people get hurt, as long as a shutdown can help them regain political power,” the article asserts. This reflection emphasizes a willingness to sacrifice public welfare for the sake of political gain.
As economic indicators provide a mixed but generally positive picture—GDP growing at 3.8 percent and real wages up 4.2 percent—the ramifications of the shutdown take on added weight. Kelly Loeffler, head of the Small Business Administration, lamented the cost to American workers, noting that each week of the shutdown slowed growth by $15 billion and resulted in the loss of 43,000 jobs. Her conclusion underscores the broader impact: “All because Senator Schumer and his caucus are willing to sacrifice Main Street so that they can derail President Trump’s historic economic agenda.”
While there is relief that the shutdown ended in time for the holidays, the underlying tension remains. Republicans are cautioned to remain vigilant, as recurring shutdowns could be on the Democrats’ agenda if they perceive an electoral advantage. This situation exemplifies the intersection of governance and strategy, where political motivations continually shape the landscape of economic reality.
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