The longest government shutdown in U.S. history affected companies big and small across the country. Although it ended, the pain may linger for a while for some businesses that lost substantial revenue during the closing.
President Donald Trump signed a short-term spending bill into law Jan. 25 to reopen the government. He ended the longest government shutdown in history that began Dec. 22 as a result of a standoff between the White House and Democratic leaders over funding for a border wall.
Many businesses reported that it took weeks for things to return to normal, after the shutdown ended; others, from the hotel industry for instance, are worried about a slow-down in reservations for spring. They say most people book trips months in advance, and many may have changed their plans because of the uncertainty caused by the government shutdown.
The shutdown had far-reaching implications for federal employees. Nearly 380,000 federal employees were furloughed and 420,000 worked without pay during the shutdown. In addition, thousands of small-business contractors throughout the country that deliver service to the government suffered losses. While federal employees will get their back pay, many contractors will not. There is no way to get back that lost revenue, which could have bolstered the economy.
The shutdown also had a ripple effect in the travel industry. Hotels in the nation’s capital were particularly affected, as major tourist attractions such as the Smithsonian museums, the National Gallery of Art, and National Zoo were closed. Business travel also took a hit from the shutdown. According to Goldman Sachs, based on data from the previous shutdowns, Washington-area hotels may see a 4% decline in revenue per available room.
The federal government partially shut down on Dec. 22 after Congress failed to pass legislation to temporarily extend funding. Nine departments, about a quarter of the federal government, were shuttered.
Source: The Epoch Times