The Effects of the Government Shutdown on the Economy
The United States Federal Government has been shut down since December 22, 2018, due to President Trump’s insistence on $5 billion dollars for a U.S.- Mexico border wall. Trump is persistent in his efforts to build this wall, and he has even considered declaring a national emergency, which would allow him to build the wall without approval from Congress.
What Is A Government Shutdown?
The government receives its funding from budget appropriations decided by Congress. Certain agencies don’t have funding when the government is partially shut down, so some workers will be unpaid. Those who continue to work through the government shut down are considered, “essential,” and are most likely involved in jobs that have to do with the protection of property, the safety of human life, or other jobs that are necessary. Republicans are extremely concerned with immigration, however, Democrats are consistent with their rejection of the wall, and have tried, unsuccessfully, to pass bills to reopen the closed government agencies.
What Does This Mean for Americans?
There are about 800,000 federal workers who are affected by the government’s being shut down. At this point, they have already missed their first paycheck. For some federal workers, this means that they will have to limit their spending and activities, but for others, it may pose a bigger issue of not being able to pay their bills such as their credit cards, mortgage, and student loans. The shutdown can have an effect on those who aren’t government workers as well. If a federal worker is not receiving paychecks, then people who are paid by federal workers will see a decrease in their incomes also. And although most Americans have not been affected by the shutdown yet, a great number of people will be financially impacted if the issues at are not solved. Low-income families who rely on The Department of Housing and Urban Development for stability will soon be forced to face eviction. Food assistance, however, has been assured to last through February.
Companies such as AT&T, Sprint, T-Mobile, and Verizon are now offering reduced fees and special payment schedules for people affected by the Shutdown, and a few local and national banks are waving specific fees, which helps their customers to break certificated deposits early. Do you feel that the wall is worth the damage it could possibly be doing to the economy?