World Economy

A reality check on small businesses and the federal shutdown impact


While much of the attention has focused on Washington, D.C., small-business owners elsewhere in the country were often just as disrupted by the recent shutdown.

The South Atlantic Census division, which includes Washington, D.C., but also Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia, might be expected to be the most affected by the government shutdown, but the region is so large that the effects centered in D.C. are mitigated by the lack of impact elsewhere. Some 18 percent of small-business owners in this region were affected by the shutdown at least “a good amount,” just above the overall average.

Still, only 21 percent of federal workers are concentrated in D.C., with the vast majority spread throughout the country. In some regions that rely more heavily on federal jobs and programs, the shutdown turned out to cause more problems for small businesses.

The East South Central division, which includes Alabama, Kentucky, Mississippi and Tennessee, had the highest percentage of small-business owners who reported being affected by the shutdown. A full quarter (25 percent) of small-business owners in this area said they were affected “a great deal” or “a good amount.”

The high population of federal workers in Huntsville, Alabama — home to NASA’s Marshall Space Flight Center, an Army base and dozens of other federal agencies — meant local businesses who normally count those workers as customers were left in a lurch. In neighboring Mississippi, Agriculture Department workers, Coast Guard members stationed along the Gulf and other federal workers were left without pay.

One small-business owner in the health-care industry in Alabama reported a “greater demand for free health-care services” as a result of the shutdown, noting that his business had been affected “a great deal.” He took action himself by calling a location politician to discuss the effects.

In communities like these across the country, the trickle-down of consumer spending, and the sudden lack of it, by workers with otherwise stable government jobs can have a disproportionate effect on the local economy.

Most people in the general public agree that the federal shutdown has had an impact. Nearly half of people (48 percent) say a government shutdown is a “major concern” for their community, and another 35 percent say it’s a minor concern. Just 14 percent say it’s not a concern at all.

Small businesses often have a symbiotic relationship with their local communities. When their communities are affected, they are affected too.

— By Laura Wronski, senior research scientist, and Jon Cohen, chief research officer, SurveyMonkey

The CNBC/SurveyMonkey Small Business Survey is conducted quarterly using SurveyMonkey‘s online platform and based on its survey methodology.



Source link

You may also like

Forex News

Fed Minutes note concern about slowing global growth and China

post-image


Fed minutes released online

  • Full report
  • Important to continue to monitor financial market developments
  • Noted that some downside risks had increased
  • Business investment has moderated
  • Recent household data have been strong
  • Strong labor market, inflation near target
  • See continued sustained expansion
  • A few officials concerned that uncertainty not captured by the dot plot
  • Reserves might near efficient level later this year
  • Several participants said rate hikes might prove necessary only if inflation outcomes higher than baseline outlook

Excerpts:

“Market participants pointed to a number of factors as contributing to
the heightened volatility and sustained declines in risk asset prices
and interest rates over recent months including a weaker outlook and
greater uncertainties for foreign economies (particularly…

Read More
Crypto Markets

Judge Appoints 2 Law Firms to Represent Quadrigacx Clients

post-image


Two law firms have been appointed to represent the clients of insolvent Canadian crypto exchange Quadrigacx in court. The number of affected users has been estimated at approximately 115,000 and lawyers will have to contact as many as they can. The digital asset trading platform owes them approximately $190 million.

Also read: Hacked NZ Exchange Cryptopia Allowed to Reopen

Miller Thomson, Cox & Palmer to Reach Affected Users

Nova Scotia Supreme Court Justice Michael Wood issued a decision on Tuesday, Feb. 19, announcing the appointment of Toronto-based Miller Thomson and…

Read More
Company News

Britain managing Huawei risks, has no evidence of spying: official

post-image


LONDON/BRUSSELS (Reuters) – Britain is able to manage the security risks of using Huawei telecoms equipment and has not seen any evidence of malicious activity by the company, a senior official said on Wednesday, pushing back against U.S. allegations of Chinese state spying.

FILE PHOTO: A 5G sign is seen during the Mobile World Congress in Barcelona, Spain February 28, 2018. REUTERS/Yves Herman/File Photo

Ciaran Martin, head of Britain’s National Cyber Security Centre (NCSC), said Britain had yet to decide on its security policy for national 5G networks, but that Huawei equipment was subject to detailed oversight and strict government controls over where it was used.

“Our regime is arguably the toughest and most rigorous oversight regime in…

Read More
Investing

Amid trade talks, China urges U.S. to respect its right to develop, prosper

post-image


BEIJING (Reuters) – The United States should respect China’s right to develop and become prosperous, the Chinese government’s top diplomat told a visiting U.S. delegation, reiterating that the country’s doors to the outside world would open wider.

Myron Brilliant, executive vice president and head of International Affairs at the U.S. Chamber of Commerce (2-L) and Chinese State Councilor and Foreign Minister Wang Yi (2-R) attend a meeting at the Ministry of Foreign Affairs in Beijing, China February 19, 2019. Wu Hong/Pool via REUTERS

The world’s two largest economies began their latest round of trade…

Read More
Crypto Markets

In the Daily: Elon Musk Talks Bitcoin, Shanghai’s Fudan University, Xdat Exchange

post-image


In this edition of The Daily we cover some largely supportive remarks the famous entrepreneur Elon Musk has made about Bitcoin, the latest academic institution to launch a blockchain R&D center, and a new offering from Malta-based exchange Xdat.

Also Read: Bank of Spain Report: Bitcoin Is a Solution for a System Without Censorship

Elon Musk Talks Bitcoin

The founder of Tesla and Spacex, Elon Musk, is once again making headlines about crypto. He recently went on the Ark Invest podcast to discuss the future…

Read More