Government Shutdown Could Hurt NJ’s Business Climate [AUDIO]
If you think the federal government shutdown isn’t going to impact New Jersey’s business climate and the state’s economy, think again.
The head of the New Jersey Business and Industry Association (NJBIA) says the effects will be minor if the shutdown is resolved quickly, but if it goes on for a prolonged period of time the Garden State will feel some pain.
“You will see more uncertainty in the business community and less confidence in the federal governor and all that means is you’re going to see less job creation and less investment,” explains NJBIA president Phil Kirschner. “You also are going to see a furlough of thousands of (federal) workers and that’s also going to impact New Jersey’s economy.”
If workers are furloughed without pay there will be less money pouring into the state’s economy says Kirschner. He acknowledges it’s a little early to think about holiday shopping, but a lot of people do like to get started early and if the shutdown drags on retail sales could take a painful hit.
“Today it’s not really an issue,” says Kirschner. “Federal paychecks aren’t due for 12 days so there is a little bit of time, but after that all bets are off.”
The business community absolutely abhors uncertainty and confusion, but that’s what it’ll be feeling if the dysfunction in Washington doesn’t come to an end soon says Kirschner.
“For the business community and consumers this is all about confidence,” explains Kirschner. “My people think if they (federal lawmakers) can’t do the most basic functions of government which is pay your bills and plan a budget, that’s pretty pathetic.”