IMC Hawks Blog

Tag: Government Shutdown

  • Government Shutdown Affecting Others Outside of Washington

    The government shutdown that is upon the country has many in Washington wondering: what do we do now? However, this congressional budget stalemate has trickled into many areas of our country that lie outside of Washington, DC. The shutdown has had an especially big impact on all service academies’ athletic programs across the country. These student athletes and coaches have been in limbo since the announcement of the shutdown.

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    At first, all athletics employees were sent home and put on leave. The Air Force Academy golf team has already cancelled a tournament since the shutdown and apparently the decision wasn’t taken very well by the people involved. What is making situations like this so difficult is that coaches of these schools are essentially government employees, leaving them no option but to have little to no communication with their players. That being said, Air Force golf has not been the only ones affected. Cross country meets, soccer games and tennis matches have been cancelled or rescheduled at all three service academies, leaving these young people forbidden from doing what they love.

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    The interesting thing is that all three schools’ football teams still competed over the weekend. Initially, all athletic functions were to be cancelled due to the shut down. However, the 3 schools decided to challenge the decision, which was then reviewed by the secretary of defense. The secretary of defense decided that the games could continue, as long as no government funds were spent on the day. Even so, many have speculated that this decision was solely a monetary decision. Navy’s athletic director, Chet Gladchuck, certainly provided some evidence for this thought with his comments that were given to CBS New York. Gladchuck was quoted saying that cancelling a game would be “devastating to the Navy athletic program budget.” While these football teams were still given the opportunity to compete and do what they love, others like Air Force golf were forced to cancel or wait to have the opportunity to do the exact same.

    The expectancy violations theory has been rampant this entire situation as every team has been affected in some way, positive or negatively. The expectations of players and coaches have not been met due to issues that are outside of their control, essentially invading their personal lives and causing a change in their daily routine. With that being said, it just doesn’t seem fair. In the end, it all seems about “par” for what has been going on in Washington as of late.

    -Ryan Nagy

  • Holiday Shopping at Risk from Government Shutdown

    The current shutdown marks the first time in 17 years that the government has come to a halt, as both political parties remain at a standstill. With no sort of compromise in sight, a chain reaction with numerous consequences could follow. Currently, one of the main concerns is the increase in number of furloughed government workers who are grouped into two categories: essential and nonessential jobs. However, if the shutdown continues, retailers of public businesses may also take a hit creating potential conflict during the holiday season.

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    As the upcoming holiday season quickly approaches, retailers are actively predicting whether or not the federal government shutdown will impact sales. According to The National Retail Federation, sales are expected to increase 3.9 percent for November and December. However, these calculations were based on past holiday sales that had no interference of a government shutdown. Depending on how long the shutdown lasts, retailers may have to alter their marketing strategies to maintain their predicted sales for the holidays.

    As the government shutdown enters its second week, no substantial progress has been made to give retailers an accurate sense as to what will come in the next few months. Some sources believe that the shutdown could not be more perfectly timed because, “…the back-to-school rush has quieted, and despite the best efforts of some retailers, the holiday shopping season is still many weeks away from being in full swing.” On the other hand, “…some marketers may find that because consumers are spending less money, their holiday marketing may need to be tweaked at the last minute this year.”  These two outlooks lead us to wonder if a rippling effect will take place. NBC News has created possible scenarios that would occur if the shutdown lasted for over a month. One possible scenario on November 17th, according to The National Retail Federation, would indicate the “make-or-break” of the holiday shopping season. Consumer confidence in retailers will diminish as the shutdown continues, which will create devastating effects for retail stores and the overall economy.

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    With Halloween quickly approaching, it will be interesting to see how the government shutdown could impact sales in terms of consumer behavior. Do you think that the shutdown will have an effect on holiday spending? How will retailers respond if the shutdown looms on in terms of marketing strategies?

    – Aaron Love, Kara Zimmerman, Rachel Clay, Rebecca Hobbs