The shutdown in Washington has been grabbing media headlines throughout the world for the past few days. The question is how will it affect businesses and the economic market?
Businesses effected by Government Shutdown
The US Federal Government employs over 800,000 “non-essential” workers, which are being sent home during the lockdown, this group which makes up only a quarter of a percent of all Americans; however, this is still a very large number when considering the influence these consumers have on the market. Now they will be “tightening their wallets” because they are not receiving their paychecks from the government. Although the government signed a bill on October 5th, stating these employees will be paid, they will only receive their pay once the government reopens, and this date is still a mystery. This will lead to these government employees not spending money at local restaurants, stores or other businesses, which will result in loss of sales and revenue for these businesses. This could lead to these businesses having to lay-off workers and in some instances even close their businesses if the shutdown continues for too long. For each day that the government is shutdown it is estimated that Washington DC will lose $200 million in economic activities.
Videos
Effects of Government Shutdown
Local Businesses Effected
http://globalnews.ca/news/876912/us-businesses-worry-about-a-prolonged-shutdown/
http://www.washingtonpost.com/blogs/wonkblog/wp/2013/09/30/absolutely-everything-you-need-to-know-about-how-the-government-shutdown-will-work/