National business organizations from various regions have called on the U.S. Senate to end the government shutdown, as highlighted in a letter supported by the White House, warning of potential “severe economic harm.”
“Dear United States Senators,” the letter states, emphasizing the urgent need to reopen the government. “As representatives of state chambers of commerce, we strongly oppose the federal government shutdown. Our communities and businesses depend on consistent and reliable government functions, and previous shutdowns have shown how devastating these interruptions can be for local economies.”
The letter was backed by eight different organizations, such as the Arizona Chamber of Commerce, Arizona Manufacturers Council, and several others from various states.
Looking back at the shutdowns of 2013 and 2019, the coalition reminded that they “have consistently opposed shutdowns, no matter which party is in control of Congress or the White House.”
“We also stand against attempts to use critical resources to leverage concessions in wider policy debates. This principle is what drives our efforts today. Preventing a shutdown should be our foremost priority,” the letter continued.
“Extended shutdowns could inflict serious economic harm.” It added that the uncertainty stemming from such closures would impact employers, workers, and investors significantly, leading to delays in federal contracts, closures of national parks, and slowdowns in government permitting processes.
Economists, including Gregory Daco, chief economist at EY, have cautioned that a prolonged shutdown could negatively affect markets. He recently remarked to ABC News, “We’re nearing a critical point where the shutdown starts to have substantial consequences.”
“A shutdown could pose additional challenges and further erode the fundamentals of the U.S. economy,” he noted, referring to it as a “vicious cycle.”
Mark Zandi, chief economist at Moody’s Analytics, estimated that every week of a potential shutdown could lower real GDP growth by approximately 0.1%, translating to about $30 billion within that same quarter.
“If a recession overlaps the holiday shopping period from Thanksgiving to Christmas, it will further undermine already fragile consumer, business, and investor confidence, creating a real concern,” Zandi observed.
The shutdown was reported to be in its 24th day, with no resolution in sight, according to CBS News.
