The Hill News

A government shutdown might not have a "traumatic" effect on the economy, but it could have one on Republicans, former President Bill Clinton said Monday.

Clinton, the former Democratic president who faced a shutdown during his 1995 budget negotiations with congressional Republicans, said he wasn't sure whether President Obama was giving too much ground to the GOP in current negotiations, but suggested that a shutdown could backfire against Republicans, much as it did in the '90s.

"It will not have the traumatic effect it probably had last time, because there are fixes, where it's shut down, but not," Clinton said of the prospect of a shutdown during an appearance on ABC's "Good Morning America."

The federal government underwent two shutdowns in late 1995 -- for five days -- and for another 22 days, carrying into early 1996, after Clinton clashed with Republicans in Congress, principally House Speaker Newt Gingrich (R-Ga.).

B! oth Obama and GOP leaders in the House, mindful of the thorny political realities of 1995, have avoided a shutdown by passing a series of short-term measures extending government spending. But the latest extension expires on Friday, and lawmakers in both parties have expressed little appetite for another short-term continuing resolution.

If an agreement can't be struck and a government faces a shutdown, Republicans could again shoulder the political burden, Clinton said.

"I think it could hurt the Republicans if it looks like the Democrats have a reasonable offer," he explained.

Gingrich, who served as Clinton's sparring partner in the 1995 budget battle, said last month that he remembered the outcome differently.

"When people say to me, 'Boy, that was really politically expensive,' my question is to who? Our base wanted somebody who was serious, and this is part of what’s going on in the country right now," he said.

Even if Congress and the White House can reach an agreement, they face additional challenges in the form of having to raise the debt ceiling and authorize a new budget for the next fiscal year. Raising the debt limit could carry additional political risk for the GOP, Clinton argued.

"If the Republicans want to refuse to raise the debt limit, they are playing Russian Roulette with our economy," he said.