For the first time in nearly seven years, the federal government has shut down. That means more than 750,000 workers could be furloughed on any given day.
As Democratic and Republican lawmakers remain at odds over things like health care and short-term funding, small business owners are caught in the middle, fearing, like last time, they will be among the first to feel the hit.
“Small businesses are going to feel this impact severely”
During the shutdown that ran from late 2018 into 2019, analysts estimate the U.S. economy lost $3 billion that was never regained.
“Small businesses are going to feel this impact severely,” said Dan Varroney, founder and CEO of Potomac Core, a marketing consulting firm based in Arlington, Virginia. “From a small business standpoint, they operate on lean margins, and those lean margins are going to be squeezed.”
Due to a relatively new law, federal workers will get back pay, but that promise doesn’t ease the stress of missed paychecks. According to Gabriel Pedreira, a union representative for the American Federation of Government Employees, most workers at some major government agencies are facing furloughs.
“There is definitely a sense of real frustration, helplessness,” Pedreira said.
During the last shutdown, Pedreira says some federal workers turned to extreme measures just to get by.
“Some people just fall behind, others just ask their relatives to borrow money. I know people who have even gone to church to pass the bucket, literally,” Pedreira said.
Long Island Congress members trade barbs over shutdown
The shutdown’s duration remains uncertain. Long Island lawmakers say talks are ongoing, but so far, there is no deal in sight.
In a show of solidarity, Democratic Rep. Laura Gillen said she won’t accept a paycheck while the government is shut down and is blaming Republican leadership for the stalemate.
“It’s important we raise the alarm on the majority’s refusal to negotiate a bipartisan agreement that would simply help millions of Americans be able to continue to afford their health insurance,” Gillen said.
Republican lawmakers, however, are pushing back. Congressman Andrew Garbarino said, “Democrats are holding your tax dollars hostage,” and Rep. Nick Lalota said, “Their shutdown is theater.”
Long Island small business owners fear the worst
Opening a pasta shop four months ago, just steps away from a Social Security office in the Long Island town of Mineola, seemed like a smart idea to Simone Pulieri, owner of Pastaru Pastificio.
“We see them every day, four or five. I know them by name,” Pulieri said of his customers.
But many of those regulars are now likely cutting back, since so many federal workers have been furloughed, or are working without pay due to the shutdown. Local business owners fear it could soon send ripple effects through Main Street communities.
“This is going to impact our business,” Pulieri said. “If they’re not getting paid, how will they come up with breakfast, lunch, dinner?”
