From a wings chain to an aerospace company, businesses feeling the shutdown pinch

Small businesses feeling shutdown pinch
Small businesses feeling shutdown pinch 04:11

As Democrats and Republicans work on legislation to end the partial government shutdown, a new CBS News poll says six in 10 Americans think the shutdown is causing serious problems for the country. About one in five Americans report being personally impacted by the cutback in services or programs caused by the shutdown.

GOP and Democratic lawmakers will present separate bills for a vote on Thursday, but neither is expected to pass. No matter when the shutdown ends, as it drags on into the 33rd day, the economy of the entire country is starting to feel the pinch. The legislative tug-of-war continues, largely for show, reports CBS News correspondent Major Garrett. 

"We are predominantly not a government-run economy. We're a free market economy," said Larry Kudlow, the president's top economist. His point is true, but Kudlow could not deny mounting financial worries – even inside the White House.
"I have young people on my staff who are concerned, so I get that. I don't want to dance away from that," Kudlow said.
The White House estimates the shutdown reduces economic growth by 0.13 percentage points each week.

The private economy turns in part on federal paychecks, the ones that have been missing for nearly a month.

Kazi Hasan, operations manager of the America's Best Wings chain in Maryland, has many restaurants located near government buildings. 
"Our clients, our regular customers, they are not showing up for the lunch break," Hasan said.
While the White House said all will return to normal when the shutdown ends, small business owners across the country, like Robert Hoyt, may feel it longer.
"We've had to let go 12 of our engineering staff. Twelve good, hard-working engineers," Hoyt said.

Hoyt's Seattle-based company, Tethers Unlimited, works with NASA and other federal agencies. Hoyt cut staffing by 20 percent because pending invoices sit unpaid on a furloughed bureaucrat's desk. 
"They were co-workers and friends to us," Hoyt said. "I expect it will make it more challenging for us to bring in new employees."
Some agency leaders are privately fretting over a coming brain drain as highly skilled workers leave for the private sector and shutdown anxiety drives away potential hires. But those fears have not been enough to forge a compromise.

"Here in the small business land it feels like we are being held hostage," Hoyt said.

There is also increasing fear that systems will start breaking down due to workers calling out sick and lack of supervision, which is spreading concern throughout the country.

The shutdown could also impact national security, as the FBI Agents Association, an independent professional organization of the FBI, issued a report saying nearly 13,000 federal agents and support staff are furloughed. It's severely impacting the bureau's operations and its ability to continue day-to-day casework.

The group urged government leaders to reach a solution soon and provide financial security. Some agents fear it's allowing criminals to go free.

One agent said their SWAT team has "no means of purchasing critical equipment, gear, or ammo for either training or operations." Another said, "The shutdown is hurting our ability to protect ourselves from those who would kill us and destroy our way of life." The group urged government leaders to reach a solution soon and provide financial security.