In his message published by the chamber’s newsletter, Brennan said there is a need for a proactive government that has “enough foresight to see past the next payday or election.”
The ripple effect of payless payday is far reaching, he added.
Brennan, who is the general manager of Microl Corp., said he received over a dozen calls from people who were worried that their cars would be repossessed by the banks because they could not pay their obligations due to the delayed payroll.
People were also concerned that their credit rating would be affected if they could not pay their car bills on time.
“Big and small businesses alike count on ‘the day after government payday’ to bolster their sales and clear their credit accounts,” Brennan said.
The expected boost in sales and credit clearing did not happen when the paychecks were delayed last month, and less money was spent during the weekend.
Brennan said overall spending will be reduced in the coming months as people realize that they have to set some money aside to prepare for another payless payday.
“Less income equals reduced tax income for the government, further exacerbating the situation,” he added.
On June 18, 2010, only government employees providing critical services such as those with the Departments of Public Safety, Public Health and Corrections or those whose positions were federally funded were given their paychecks while the rest of the employees got theirs three days later.
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