It seems cliché to say that politics influences business successes, but sometimes there are instances where there is truth to that notion. The latest vote regarding funding apportionments and the increase of the nation’s debt ceiling appears to have saved the national economy from potential disaster, and was met with cautious optimism from the stock market.
The vote ends 16 days of gridlock that resulted in the federal government being shut down. In essence, the government could not function because Congress had not passed any laws authorizing the government to spend any money, which prevented federal agencies from performing a number of functions, including workplace inspections, maintaining national parks, and continuing investigations.
Democrats and Republicans were at odds over the implementation of (and funding of) the Affordable Care Act, which was dubbed Obamacare.
The shutdown not only affected federal employees, it also was a substantial inconvenience to small businesses in Colorado that work with the federal government. These businesses that have contracts with the government would not be paid on time, and would likely have to wait a bit longer for payments.
Nevertheless, as news spread that legislators were talking and were heading towards an accord, stock markets began to pick up steam and essentially erased any losses that occurred when the initial shutdown took place.
With a temporary fix in place, credit markets appear to have stabilized, prospective buyers may avoid rate hikes on car and home loans, and consumer confidence may increase as the holiday season approaches. All of these are solid indicators for Colorado businesses.
Source: DenverPost.com, Congress votes to end shutdown, avoid US default, October 17, 2013
