Government Shutdown Bad for Business
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MLADEN ANTONOV/AFP/Getty Images(NEW YORK) — If the government shutdown lasts for more than a few days, many businesses could be forced to lay off employees.
Millions of firms do business every day with the federal government. Many still don’t know which contracts will be honored during the shutdown.
Already, 800,000 federal workers are now on furlough and many more are being asked to work without pay for now. Their spending at stores and restaurants will be reduced.
During the last government shutdown in 1996, the economy was in much stronger shape than it is today. Economists have predicted that a two-week shutdown could reduce growth by 0.4 percent for the fourth quarter.
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