Government shutdown more than just political theater

I know the Trump 2016 reality show and the Republican search for a Speaker are what’s captivating viewers right now, but here’s a preview of the Fall political “blockbuster”: fiscal cliff II:  the sequel. We’re just two weeks or so away from a political standoff over the debt ceiling increase and a few more weeks before the prospect of yet another government shutdown.  

For some this is just political theater, but it has a lasting and real impact on the men and women who work in the government and the economy as a whole. 

{mosads}When a shutdown occurs, it has the potential to affect everything from airport security screening (TSA warned of possible delays in 2013) to passport delays (in 1996 more than 20,000 U.S. applications went unprocessed). But that’s just the obvious. 

The real and lasting impact is the time, money and effort lost on contingency planning. Over the last few months, government agencies have had to plan for a shutdown, which means cancelling or postponing travel plans and general disruption. 

Business travel, a major part of our economy, is impacted when business travelers learn about a possible shutdown and scrap trips as well out of concern of what it means for travel delays. It sets a dangerous precedent that our economy is not open for business. 

Why does this matter? Just as the Super Bowl or other major events boost the economy, a reduction in travel dampens it. Business travel is responsible for about 3 percent of U.S. GDP (about $500 billion), and for every 1 percent increase in business travel spending, the U.S. economy gains an additional 71,000 jobs, $3 billion in wages and $1.2 billion in tax collections. In other words, business travel matters. 

And so when Congress and the White House start pointing fingers and play the blame game, it sends a message to businesses around the country to pull back, to delay travel. And travel delayed is never recovered from an economic standpoint. It’s the equivalent of a labor strike that curtails a sector of our economy. This potential economic activity is lost forever. 

Additionally, it is not just business travelers who are affected. Vacation travel is dampened with the closure of U.S. National Parks, and fears that airport lines will be long or flights delayed. It undermines confidence, which is terrible for an economy. 

During the last government shutdown in 2013, the Global Business Travel Association asked business travelers what impact it was having on them. Two in five business travelers said a shutdown had affected them and 66 percent said a shutdown of longer than a week would negatively impact their business. 

With the economy a bit up and down ­ U.S. GDP was weak in the first quarter but stronger in the second ­ can we really afford a government shutdown? This uncertainty hurts employee morale, holds back business growth and, if not stopped, can deliver a serious blow to the overall economy. 

That’s why the White House and Congress should do everything possible to resolve the debt ceiling increase and avoid a shutdown. Additionally, the men and women who are running for the White House on the grounds that they are best positioned to guide our economy should insist that economic growth and business travel not be a bargaining chip. 

There are real differences on social and economic issues that Democrats and Republicans must solve, but holding the government hostage ­ and damaging our economy ­ are not the acts of responsible leaders. 

Its time to bring down the curtain on the Fall blockbuster. Given Speaker Boehner’s (R-Ohio) pending resignation, our leaders in Washington should ensure that the government ­and travel ­ remains open for business.

McCormick is the executive director and COO of the Global Business Travel Association.