Fill me in: In 2019, the United States experienced the longest government shutdown in our nation’s history. For 35 days, the impact was felt by any person or entity that interacts with the federal government.
The 2019 shutdown by the numbers
- 35: the number of days the government was shut down
- 800,000: the number of furloughed federal workers
- $5,000,000,000: the damage to the U.S. economy
The business perspective
Individuals and businesses across the country felt the shutdown.
- The 2019 government shutdown brought business to a grinding halt for a century-old hotel in Georgia that serves thousands of people who visit Cumberland Island National Seashore each year. Due to a lack of federal funding, the National Park Service suspended ferry transport to Cumberland Island—a move that essentially evaporated the hotel’s customer pool overnight.
Unfortunately, they would not be alone in experiencing a negative impact if another shutdown occurs. Dining, leisure, hospitality, and service industries would feel the pinch if customers dried up due to a government shutdown.
- Tourists who visit our nation’s national parks, monuments, and museums would find many closed or operating at reduced capacity, and local leisure and hospitality industries would see their customer bases shrink.
- Travelers would find federally run transportation services, including the Transit Security Administration (TSA), operating below normal staffing levels, creating headaches for business and leisure travelers alike.
Bottom line: These indirect effects would put an unwelcome damper on the economy as it continues to deal with inflation. The good news is that a government shutdown is not inevitable. It is a choice.
Extended Government Shutdown? Our Member Memo on the Implications
September 18, 2023
Despite the fact that the Biden Administration and Congressional leaders from both parties in the House and Senate want to avoid a government shutdown, there is a substantial consensus that a shutdown will occur at the beginning of the fiscal year on Oct. 1.
If a government shutdown does occur, it is likely to be significant in duration with no clear path for reopening the government.
In a new memo to our members, the Chamber is providing more detail about the possible length of a shutdown and the implications for the business community and the economy so that our members can prepare accordingly.
About the authors
Neil Bradley
Neil Bradley is executive vice president, chief policy officer, and head of strategic advocacy at the U.S. Chamber of Commerce. He has spent two decades working directly with congressional committee chairpersons and other high-ranking policymakers to achieve solutions.
