Risk of another shutdown in America

Washington: The risk of a shutdown has increased once again in the United States.

According to a foreign news agency, the bill related to government funding could not be approved by the US Senate, due to which the fear of a shutdown in the United States has increased.

The bill related to government funding has already been rejected by the Democrats in the Senate.

It is pertinent to note that the longest shutdown in the United States before this lasted for 35 days and this happened during Donald Trump's first term in office.

Earlier on Wednesday, the US government shut down most of its departments and agencies after Congress and the White House failed to reach a budget deal. This is the 15th shutdown in the US since 1981, and this time the duration and effects could be much more severe.

What is a government shutdown?

A government shutdown occurs when the US government is forced to close many departments due to the failure to approve a new budget for its expenses.

That is, government agencies that are not considered “essential” stop working. This affects many things such as Social Security work, air travel, and access to national parks, etc.

Every year in the US, Congress passes a budget for government expenses, and then the president signs it. If the budget cannot be passed due to political differences, the agencies do not have money for expenses and have to close.

The result is that thousands of government employees do not come to work and receive salaries until the budget problem is resolved.

Why did the govt system shut down?

Most departments of the US government need a fund of $1.7 trillion to run, but Democrats and Republicans could not agree on it. Democrats want to extend the duration of health care benefits for the public, while Republicans oppose the increase and say that this issue should be resolved separately.

When the Senate rejected the temporary spending bill, government agencies ran out of funds, and the shutdown began.

Who will be most affected?

• The shutdown will directly affect 7.5 million federal employees who will be temporarily sent home and will cost about $400 million per day.
• Military personnel and air traffic controllers will remain on duty but will not receive salaries.
• The FBI, DEA, and border security agencies will also continue to operate, but will face funding problems.
• Social Security, Medicare, and Medicaid payments will continue, but there will be staff cuts.
• Food assistance programs (SNAP and WIC) will continue to operate under temporary funding.
• Mail delivery will not be affected because the US Postal Service does not rely on Congressional funding.
• Courts will be able to operate for a limited time, but their system could also grind to a halt in the event of a prolonged shutdown.
• Loans and facilities for small businesses will be halted.
• Publication of key economic data, such as employment and GDP reports, will be suspended.

Political conflict

The shutdown is directly linked to the policies of President Donald Trump. Trump has already announced plans to reduce the size of the federal government and has said that the shutdown will pave the way for him to cut more jobs and programs. His budget director, Russell Vote, has even threatened permanent layoffs if the shutdown lasts longer.

Democrats say they will not compromise without health care for the American people.

Senate Democratic Leader Chuck Schumer says, “He (Trump) is trying to pressure us, but we will not back down”.

On the other hand, Republican Leader John Thune said that this is all a political game and there is no real reason for the shutdown.

Impact on economy

The crisis has also shaken global markets. Wall Street futures fell, gold prices reached record levels, and uncertainty was also seen in Asian markets. Investors fear that delays in US government data and job losses will increase pressure on the global economy.

How long will this shutdown last?

According to Reuters, analysts say that given the current political environment and party extremism, this shutdown could be longer than in the past. It should be noted that the longest shutdown in US history took place in 2018-19 during Trump’s first term, which lasted 35 days.

What does this mean for public?

• Ordinary Americans will face security at airports and flight delays.
• Thousands of government employees will be forced to stay home without pay.
• There will be uncertainty in healthcare and social services.
• Rising uncertainty in the economy could put further pressure on inflation and job opportunities.

All this is happening at a time when the United States is burdened by a record debt of $37.5 trillion. Experts say that if Congress and the White House do not reach an agreement soon, this crisis could prove dangerous not only for the American people but also for the global economy.