Business groups are sounding the alarm as the government shutdown, which began on October 1, is causing significant problems for the economy and small businesses. The U.S. Chamber of Commerce reported that the longer the shutdown continues, the more it negatively affects firms, employees, and overall economic growth.
Neil Bradley, the Chamber’s Executive Vice President, stated the shutdown is detrimental to small businesses and is leading to economic losses that are hard to recover from. He noted, “This shutdown is already one of the longest, and there doesn’t seem to be a quick fix. Businesses are feeling the pinch now, and it may hinder their growth in the future. We need the government to operate smoothly for businesses to thrive.”
Last week, the Chamber organized a fly-in event in Washington, D.C., allowing small business owners to meet with lawmakers to voice their concerns. Philip Freeman, CEO of Murphy’s Naturals, which manufactures natural insect repellents, highlighted the challenges faced by businesses during the shutdown. He pointed out that the delay in regulatory approvals will create a backlog that extends well beyond the end of the shutdown.
Other industry leaders are echoing these calls for a resolution. Jay Timmons, president of the National Association of Manufacturers, emphasized that a functioning federal government is crucial for manufacturers to get new products approved and for inspecting facilities.
Additionally, the American Petroleum Institute warned that the shutdown complicates regulatory processes for energy projects, creating uncertainty in an already challenging environment. The group underlined the importance of a stable government to support the oil and natural gas industry in delivering reliable energy.
Treasury Secretary Scott Bessent also weighed in, stating that the shutdown is affecting the economy in serious ways, estimating losses could reach about $15 billion a week. He urged Senate Democrats to collaborate on a spending agreement to restore funding and reopen the government.
As the situation stands, many in the business community hope for a swift end to the shutdown, recognizing that stability and support from the government are essential for continued economic growth and innovation.
