The U.S. Government Shutdown

by Matthew Pellicer on October 2, 2013 - 11:08am

http://www.montrealgazette.com/health/Looming+debt+crisis+could+government+shutdown/8984328/story.html

As most people know by now, Monday night, at midnight, there was a shutdown of the U.S. government. This means that all non-vital jobs are put on hold. This means paychecks won’t be coming in to the 800,000 employees that currently work for the federal government. All personnel considered necessary for the population, is still working but without pay.

Many people might wonder how this could affect the economy and it’s very simple. For every week the government is shutdown, this represents about $1 billion dollars not paid to the people who work for them either directly or indirectly. This affects the economy immensely because people aren’t going to be able to pay their debts anymore meaning they won’t be buying many things. This affects us mostly because the U.S. consumes a lot. They buy from many different countries and export tin large amounts also. This means that prices might rise as companies and resellers can’t by as much anymore because they don’t have the same amount of clients.

As the article mentions, I thought it was interesting to know the real reason behind the government shutdown and the refusal of the Republican Party. Obamacare would allow many of the people who don’t have driver’s licenses because they don’t have the money to, to register to vote. This section of people that don’t currently vote would most probably vote for the Democrats. Of what I can get, I see the Republicans as just trying to keep the competition down while putting the American population at risk of either ending up on the streets or not being able to feed their families. I don’t find this right because while they are opposing to try and help people by offering a cheaper healthcare because they don’t want to raise the debt ceiling, they are causing many people to need more help than they originally needed because as the government stays shut down people won’t consume as much causing job cuts in many companies and more and more people losing salaries and it just becomes a vicious circle.

Comments

I’m not quite sure I understand the situation, why exactly have the Republican Party caused the shutdown on thousands of governmental jobs and why hasn’t Obama done anything about it? However, based on the information provided I completely agree with you. The fact that all those jobs have shutdown and people must now work without paid hours can be a huge issue for this time. As you mentioned, some families are already barely able to buy what they need to survive. Not to mention the negative effect on the economy that isn’t already that great for the U.S. In addition to that, as you also mentioned, the prices while have to rise even higher than they already are in order for the unpaid employee’s to be able to get some money to keep consuming what they need, causing a decrease in the international clients that are usually consuming from them. Therefore the income of money they usually make to maintain the economy is partially lost and the economy will further on decrease because of the debt that each unpaid individual will suffer because of this situation! Someone had to take a decision soon because they are putting their nation is trouble!
Here is more information on the issue: http://www.cbc.ca/news/world/u-s-government-shutdown-what-s-next-1.1875050