The Government Shutdown: More Than Shuttered Monuments
The government shutdown, currently headed into its second weekend, is a problem for approximately 800,000 furloughed workers, as well as those in need of federal services, and tourists who want to visit national parks, buildings and monuments. However, economist Ray Perryman, who heads up The Perryman Group, noted that the longer the shutdown drags on, the higher the negative impact and economic costs.
“Essential functions are still going on and few people are directly affected by the shutdown,” he noted. However, closed offices mean nearby businesses — such as restaurants — are negatively impacted. Small business loans guaranteed by the government also grind to a halt. Additionally, “the associated uncertainty can also reduce or delay private investment decisions and add to market volatility,” Perryman said.
Perryman also said the shutdown is indicative of the legislative and executive branch’s inability to tackle important problems. “Maintaining basic budget authority to keep the doors open should not be that difficult,” he added. To prevent still more contentious shutdowns in the future, he said, it’s important that Congress and the presidential administration work together to focus on budget issues and “more significant points of contention.”
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- ◦Economy
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