Our government is in a shutdown, but what does that really mean? How can our government be closed? This article will give readers an understanding of what government shutdowns are and how they happen, then explore the effects of government shutdowns on the economy and American citizens.
Why is this shutdown happening?
As of October 1st at 12:01 AM, the government officially shut down because the Republican and Democratic parties have failed to agree on a bill to fund government services for October. Budget disputes are common in the government, but this one is especially tense because of the president’s previous budget cuts and cuts of other national services. The main point of contention between the two parties in the budget distribution bill was that the Democratic party wanted to renew funding towards healthcare more than the Republican party did, and because they could not agree on a number, no bill was passed. (In the Senate, where the Democratic party has the majority, the Republican party’s budget bill did not pass because it was short by 60 votes.) Democrats say that the shutdown is happening because Republicans will not agree to extend the Obamacare tax credit, and they will not back down on the issue, but some Republicans are arguing that Democrats are just using the shutdown as a device to attack the Republican party and that it’s fully up to them to end the shutdown. The shutdown means that most government services are temporarily suspended until the shutdown is resolved.
Why do shutdowns happen?
Shutdowns like these happen when the government cannot agree on a single budget plan. Because of the Antideficiency Act (passed in 1884 and amended in 1950), no federal agency can spend or receive money without getting the money from Congress or getting direct approval from Congress. To divide their money, Congress is required to pass 12 appropriation bills through 12 committees in congress to divide their money. Shutdowns happen when any of the 12 bills aren’t agreed upon by their committees, and the shutdown will continue until the budget dispute can be resolved. If only one section was disputed, that section of government could have a partial shutdown where only the federal agencies under that section of the bills shut down, but when all the appropriation bills fail to pass, everything shuts down.
Has this happened before?
This is not the first time the United States government has shut down. The first shutdown in United States history happened in 1980 during Jimmy Carter’s Presidency. This shutdown started over a budget dispute surrounding the funding of the Federal Trade Commission, which is a federal agency that is part of the government. It marks the first time in US history that a federal agency was shut down because of a budget dispute. It ended because Carter threatened to shut down the entire government if the dispute on the budget for the FTC was not settled, prompting a resolution to the shutdown. Though this shutdown only lasted for one day, economists estimate that it cost the government $700,000. (A lot of that money was money they owed to the almost 1,600 workers who were suspended during the shutdown.) During President Donald Trump’s first term, 3 government shutdowns took place. The most recent shutdown occurred during Trump’s last term in 2018; It lasted 35 days. This shutdown happened because the government couldn’t agree on funding a border wall in Mexico. This shutdown ended because of air traffic controllers. Many of them were forced to work without pay, so many of them stopped coming to work, which delayed flights, and eventually, enough pressure was put on the government to end the shutdown.
What are the effects of a shutdown?
This becomes an issue because, for as long as the government stays shut down, many federal workers are placed on unpaid leave, leaving many people unemployed for an indefinite amount of time. About 750,000 federal workers (40% of federal workers) are currently on unpaid leave. Not all government services will shut down; services deemed essential will keep running, but many of the people who keep working in these essential programs are not paid while the shutdown continues. ICE, law enforcement, border protection, in-hospital medical care, and air-traffic control workers will operate as usual with pay during the shutdown, though the pay they receive is likely reduced, and the longer the shutdown continues, the more likely it is to stop completely. Some other services, like food assistance programs, federally funded preschools, and institutions like the Smithsonian, will likely be suspended. Some members of the Center for Disease Control (CDC) and the National Institute of Health (NIH) will likely be limiting the number of people working there, but not fully halting operations. Last time there was a shutdown in 2018, most national parks stayed open but with reduced staff, increasing rates of vandalism, littering, and looting. There’s also a high chance that the government shutdown will affect the speed of airlines as air traffic controllers stop receiving pay, which is expected to result in more delays and less frequent flights during the shutdown. For students like us, federally funded grant programs and student loan payment programs are in danger at this time, as they will stop being funded, putting many students’ money at risk. Shutdowns are also bad for the economy, as the last one in 2018 cost the government billions of dollars.
How has the White House responded so far?
Some White House officials have threatened to use the shutdown as a way to spot more cuttable programs that the government is currently funding. On September 30th, a day before the shutdown began, Trump said to expect more cuts and layoffs in the upcoming weeks. With both sides blaming the other side for the shutdown, progress seems to be going nowhere.
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