When these aids are gone, a large number of private sectors related to this will adjust their business expectations on a large scale, and will also follow suit with large-scale layoffs, reduce upstream and downstream procurement, shrink business, and a series of chain reactions. This will bring far more than the $50 billion contraction caused by the closure of the International Development Agency itself, and may bring a chain reaction of hundreds of billions of dollars. There are also the US Department of Defense and so on. These are similar, and the multiplier effects are large and small, so I won’t go into details one by one.
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What kind of multiple contraction effect will the closure of USAID bring? Whether Trump realizes it or not, the closure of USAID will send a strong signal of overseas contraction to domestic private contractors and overseas service support providers in the United States. Although many of these expenses are incurred overseas, they are actually earned by American companies, some direct government procurement, and some orders brought by exerting influence abroad, such as bribing local officials and exerting ideological pressure to squeeze Huawei out of the communications field and turn to their procurement, etc.
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