Since the U.S. government shutdown, many have been concerned with what this means for the economy. United States defense contractor Lockheed Martin stated that it would put 3,000 workers on unpaid leave. One of the consequences of the shutdown includes not being able to collate economic data. Penny Pritzker, U.S. Commerce Secretary, described how this current situation is affecting businesses because of their inability to receive data. Furthermore, the number of staff members on leave is said to grow if the shutdown continues. Not only has the United States government shutdown had an affect on the country’s economy, but it has a global impact as well. Due to the fact that the U.S. economy is the number one economy in the world, it is inevitable that their affairs concern the rest of the world as well. The Chilean President Sebastian Pinera suggested that the country confront its fiscal problems in a more efficient way that wouldn’t include shutting down the government. However, President Obama refuses to negotiate with Republicans over budget issues until they decide to pass a temporary bill to reopen the government as well as raising the country’s borrowing limit. In terms of businesses, many feel that congress needs to find a solution now.
References
http://www.bbc.co.uk/news/business-24419564
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Seaspan Shipyards has announced a new $3,300,000,000 contract from the federal government in order to build vessels for the Canadian Coast Guard. Holy ship, that’s a lot of zeros! This recent news will mean that up to 17 vessels will be built Seaspan, including 7 ships from a previous contract confirmed in April. What exactly does this mean for Canada’s economy? Harper’s government claims that it will create jobs and generate significant economic benefits not only in shipbuilding, but other industries across the country. The article claims that 4,000 jobs are expected to be created from the first Vancouver contract alone. Minister Moore feels that The Government’s National Shipbuilding Procurement Strategy has played a significant role in revitalizing the province’s shipbuilding industry. The amount of long-term jobs in this industry alone show signs of future economic growth. Construction, manufacturing, and engineering companies will continue to benefit from this project. Meanwhile, opposing parties are pressing the Harper government to see if they can follow through with all of their promises. Only time will tell exactly how beneficial this project will be for our economy.