TALLAHASSEE, Fla. (WTXL) — Economists anticipate a swift rebound in economic activity following the conclusion of the longest federal government shutdown in U.S. history. However, some local businesses in Tallahassee report lingering financial strain due to reduced consumer spending during the closure. n nThe shutdown disrupted income for thousands of federal employees and halted Supplemental Nutrition Assistance Program (SNAP) benefits, resulting in an estimated $11 billion in irreversible economic damage, according to the Congressional Budget Office. n nRandall Holcombe, a professor of economics at Florida State University, expressed confidence that the broader economy will bounce back quickly once federal workers receive back pay and begin spending again. He noted that while the national economy was not severely disrupted, the burden fell heavily on individual households. n n”When people get their overdue wages, they’re likely to spend them rapidly,” Holcombe explained. “Some may have taken on debt or delayed essential purchases, so this money will flow directly back into local markets.” n nJoe Rojas, a representative for the American Federation of Government Employees (AFGE), described the personal toll on workers who went weeks without income. Many relied on food banks, took on temporary jobs, and struggled to cover basic bills. “The stress is immense when you’re working full-time but can’t afford groceries,” Rojas said. n nLocal businesses also felt the pinch. Community Co-Op Market, which serves a customer base with lower incomes, reported an 18% drop in SNAP-related sales in October and a 51% decline in November. That translates to roughly $900 in lost food stamp transactions this month, compared to the typical $2,200. n nRene Deschene, the market’s general manager, emphasized that this loss is likely permanent. “Once food isn’t bought, it’s gone,” he said. “Our recovery depends on when SNAP funds return to people’s accounts.” n nWhile federal-level recovery may be swift, the experience underscores how vulnerable certain communities are to disruptions in government support programs. n— news from WTXL ABC 27 Tallahassee News n
— News Original —nEconomic recovery begins at federal, local levels after government shutdownnTALLAHASSEE, Fla. (WTXL) — Experts expect the economy to recover quickly following the end of the longest government shutdown in U.S. history on Wednesday. But the recovery also rests on some Tallahassee businesses that say their sales were impacted. n nThe government shutdown left thousands of federal workers and SNAP recipients without benefits, leading to an estimated $11 billion of permanent economic loss, according to the Congressional Budget Office. n nHowever, Florida State University Professor of Economics Randall Holcombe says the economy will recover quickly once federal workers start spending their back pay. n nWatch the video below to learn what local recovery looks like to businesses in Tallahassee. n nEconomic recovery begins at federal, local levels after government shutdown n nBROADCAST TRANSCRIPT: n nThe government shutdown left in thousands of federal workers unpaid and SNAP recipients without benefits. n nNow that it’s over. n nThe question is: What’s the impact to the economy? n nWell, not much, according to Florida State University Professor of Economics Randall Holcombe. n n“I think the economy will recover pretty quickly. I mean, actually, the economy as a whole wasn’t affected that much,” he said. n nData released from the Congressional Budget Office shows the shutdown is leaving behind an estimated $11 billion in permanent economic damage due to a slowdown in goods and services. n nHolcombe expects the economy to quickly recover once federal workers spend their back pay. n nHowever, most dollar impact would be seen in individual households. n n“When people get their back pay, they’re going to spend that money pretty quickly, and you know, partly it might be they might have had to borrow money or put off some expenditures in the past, and so that money is going to come right back into the economy,” Holcombe said. n nABC 27 talked to Joe Rojas, a union advocate for AFGE, one of the largest unions for federal workers. n nHe says going weeks without pay during the shutdown forced workers to rely on food pantries, pick up side jobs, and prioritize the bills they could afford to pay. n n“Finances is like the major part. When you’re forced to work, you’re mandated to work 40 to 48 hours a week… and so when you’re putting all those hours and then you can’t put food on your plate, it is extremely stressful,” Rojas said. n nLess shopping meant less revenue for local Tallahassee stores like Community Co-Op Market. n nGeneral Manager Rene Deschene says most of their customers have lower incomes. n n“As far as SNAP dollars go, we noticed an 18% decline in October of SNAP spending, and so far in November, it’s been a 51% decline in SNAP spending,” he said. n nThat’s about $900 dollars in sales made with food stamps so far this month. n nCompared to an average month, Deschene says that amount is supposed to be about $2,200 as of now. n n“It’s probably more of a permanent loss. Once that food isn’t purchased, it’s not going to be purchased,” Deschene said. n nAs for their recovery, Deschene says it’s a waiting game. n n“It’s just, you know, waiting for those SNAP dollars to get back into the people’s accounts so that they can come back and start spending again,” he said. n nWant to see more local news? Visit the WTXL ABC 27 Website. n nStay in touch with us anywhere, anytime. n nLike us on Facebook