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The International Franchise Association and the National Retail Federation both released statements about the resolution to reopen government and lift the debt ceiling that was signed by President Obama this morning.
IFA's president and CEO Steve Caldeira said the crisis will have longstanding negative consequences on the confidence of business owners, who are feeling the impact of reduced consumer power. According to a study released earlier this week from Goldman Sachs, two out of five consumers cut back their spending during the 16-day government shutdown.
"Reopening the government and raising the debt-ceiling will hopefully allow lawmakers to return to addressing the long-term challenges our country faces with entitlement programs, spending and tax and immigration reform," Caldeira said.
NRF president and CEO Matthew Shay said that, despite today's decision, the debate will likely continue, which will have negative consequences.
"As we head into the holiday shopping season, retailers and consumers need stability and certainty from policymakers in Washington and assurance that the economy will not implode due to their actions or more important, lack thereof. This new norm of legislating from crisis to crisis is no way to govern," he said. "Our economic recovery is retail-led and consumer-driven, and political leaders on both ends of Pennsylvania Avenue need to stop undermining consumer confidence with partisan posturing. When consumers cut back their spending, it threatens jobs in every industry. If it's bad for retail, it's bad for the economy, and ultimately the biggest losers are American taxpayers. Today's decision will provide some breathing room for legislators to negotiate and compromise, but it is not a solution to our long-term economic or fiscal challenges."
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