It's time to end the government shutdown

A substantial portion of the Federal government remains closed since funding expired on December 21 of last year. The shutdown, now the longest on record, includes all “non-essential” operations of the departments of Commerce, Transportation, Agriculture, Homeland Security, Justice, Interior, Housing & Urban Development, State and foreign operations, and for agencies like the IRS, EPA and for Federal research programs. 

Here are just some of the negative impacts the shutdown is causing the country and the business community: 

• Companies of all sizes are delayed in their ability to secure loans, raise additional capital, complete IPOs, and process required forms and documentation;
• Mortgage approvals for homeowners and businesses are delayed;
• Travelers at airports are experiencing long waits;
• Funding for highways and transit is on hold;
• Mergers and acquisitions are being postponed;
• Imports are hindered and tariff exclusions are unprocessed;
• Farmers are frozen out of Federal credit and assistance; and
• Cybersecurity and on-site critical infrastructure inspections are affected.

This impacts our local community as well as our visitors. As such, the Partnership has signed on to the following letter urging resolution to the shutdown:

"TO THE PRESIDENT OF THE UNITED STATES AND MEMBERS OF CONGRESS:

On behalf of the American business community, we urge Congress and the administration to immediately take steps to restore the full operation of the federal government.

The current shutdown – now the longest in American history – is causing significant and in some cases lasting damage to families, businesses, and the economy as a whole. The harm is well documented and continues to compound with each passing day.

Since the shutdown began, various compromises have been floated by both Republicans and Democrats. There are numerous paths forward that would allow for the government to be reopened that should be acceptable to all parties. Failing to seize on one of those compromises that can pass Congress and be signed into law is unacceptable.

The time to act, the time to end this shutdown is now so that we can keep the economy moving forward."

It is not about assigning blame, but rather encouraging both sides to compromise and solve this problem. We applaud those in our business community such as Alpine Bank and Our Community Foundation who have programs and support networks in place to help government employee on furlough.

As recently noted by the Vail Daily editorial board, our local economy depends on working effectively with federal agencies, most especially the Forest Service. They are right - our service-driven resort infrastructure is propped up the “quiet force” of immigrant workers, and our tourism sector is dependent upon a strong national economy.  

The Administration reportedly estimates the shutdown will subtract 0.1 percentage point of growth from GDP for every week the government remains closed for business. Mark Zandi, chief economist at Moody's Analytics, forecasts a half a percentage point hit to GDP if the shutdown lasts through March, roughly a third of the administration's new estimate.

"We estimate (the shutdown) will reduce first quarter real GDP growth by approximately 0.5 percentage points," Zandi wrote in a research report. "Of this, about half will be due to the lost hours of government workers, and the other half to the hit to the rest of the economy." Zandi said his estimate could worsen if the administration can't continue to triage the effects of the shutdown or if the administration can't issue tax refunds.

It is time we end the shutdown now.

Chris Romer is president & CEO of Vail Valley Partnership, the regional chamber of commerce. Learn more at VailValleyPartnership.com