Indirect Effects Of Government Shutdown In Quad Cities Area - News and Weather For The Quad Cities -

Indirect Effects Of Government Shutdown In Quad Cities Area


Along with the direct impact of those furloughs and closures from the government shutdown there's a trickle down effect across the country and here in the Quad Cities area.
Taking a look at the Rock Island Arsenal alone, the Quad Cities Chamber says it pumps about $1 billion into the local economy yearly. With nearly 3,000 employees furloughed there now, officials estimate that means roughly $1 million a day the area is missing out on. That's money that won't be going to things like restaurants and entertainment. Some businesses are already starting to feel it and preparing for however long it could last.
Juan Garcia, co-owner of La Flama restaurant in downtown Moline says these last couple of days haven't been the usual lunch crowd.
"Business is a little slow especially lunch time because we have a lot of business from the arsenal. It does affect us right now too."
He estimates about a 30 percent drop since the shutdown began. Garcia usually schedules five servers during lunch and he hopes he won't have to cut some employees hours. "We don't know when it's going to end. It's like I'll start taking measures. For us, how are we going to spend the money."
Furloughed workers don't have the disposable income that's usually coming in and it creates a ripple effect to the tune of about a million dollars a day that's not sinking into the QCA economy. 
"People are going to the unemployment lines wondering how they get a paycheck tomorrow," said Paul Rumler, Executive VP of the Quad Cities Chamber.
Chamber officials say it's nearly impossible to put an exact dollar figure on what furloughs across the board mean to the area but representatives are advocating congressional leaders to come up with a solution soon. They describe the climate for businesses right now as unstable.
"Specifically in the Quad Cities we're seeing the interactions between businesses and the federal government come into question. Are certain offices going to be open when they pick up the phone," added Rumler.
Q.C. Convention and Visitor Bureau officials say another indirect impact has to do with travel. Furloughed federal employees not attending normal meetings or conventions, which the arsenal hosts a lot of, normally bringing a lot of people to this area.


Powered by WorldNow

805 Brady Street, Davenport, IA 52803

Telephone: 563.383.7000
Fax: 563.383.7131

Can’t find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Young Broadcasting of Davenport, Inc. A Media General Company.