The Repercussions of Partial or Complete Closure of the United States Government
When Congress fails to enact financing bills, which results in a lapse in appropriations, this can lead to a shutdown of the federal government. This results in the suspension of all federal operations that are not absolutely necessary, and it also throws thousands of government workers on unpaid leave temporarily. Even though they have negative effects on the economy and society, government shutdowns continue to be used as a political strategy in fights over the budget. This article investigates the reasons behind shutdowns as well as the effects they have had throughout history using significant examples.
What are the Root Causes of Shutdowns?
The power to spend money comes from the Constitution, which gives it to Congress. Prior to the beginning of each fiscal year on October 1st, they are required to enact appropriations legislation in order to establish budgets for federal agencies. In the event that these bills are not passed by the deadline owing to political disagreements, there will be a shutdown of the government until an agreement can be found.
Impasses are frequently caused by the divisions that exist in Congress between the party of the president and the opposition. Threats of a government shutdown have been weaponized by Democrats and Republicans respectively in order to damage one another and obtain concessions on unrelated policy concerns such as immigration policy riders and healthcare policy riders. The procedure for creating the budget was not intended to be held captive in such a fashion.
Examples from Recent Times
The struggle between Speaker Newt Gingrich and President Bill Clinton over proposed cuts to Medicare spending triggered the longest government shutdown in history, which lasted a record-setting 36 days in 1995-1996. The shutdown that occurred in 2013 lasted for sixteen days as conservatives attempted to defund the implementation of Obamacare. In response to disagreements on the funding for a border wall, President Trump prompted a partial government shutdown that lasted for 35 days, beginning in late 2018 and continuing into early 2019.
All of these measures resulted in the furloughing of around 800,000 “nonessential” federal employees until resolutions gave temporary funds. Losses were also incurred by independent contractors and others who relied on federal paychecks. The economy, public services, and people’s faith in governance all take a hit during shutdowns.
Cost on the Budget
The Congressional Budget Office predicts that the government shutdown in 2013 cut economic growth by 0.2–0.6% and eliminated $2 billion in activity in the private sector. Standard & Poor’s has set a negative outlook on the credit rating of the United States as a result of the country’s dysfunction. According to the Congressional Budget Office and analysts, the total cost of the shutdown that occurred in 2018-2019 was $11 billion.
The decline in tourists visiting public lands, national parks, and museums has a negative impact on the local economy and communities. There is a threat to public-private partnerships as a result of the suspension of FDA reviews, USDA loans, and other activities. Productivity and wages lost due to absent or departing employees can never be fully regained. Those who are furloughed will never receive back pay for missing chances or extra worked.
Influences on Society
However, non-essential activities such as rehabilitation, research, and assistance programs have been put on hold while essential services like as air travel, border control, and medical care continue as normal. There have been lapses in food safety inspections, environmental monitoring, and services for Native Americans.
Processing of approvals for passports and visas has come to a halt. Families go through hardship when one or both parents are forced to care for children rather than pursue new employment and risk losing wages. Even though there is no longer any income coming in, the rent and expenses will still need to be paid. During the government shutdown, the number of people using food banks is estimated to have increased by 30–40% in the District of Columbia alone.
Even short-term disturbances damage the system’s stability and the confidence that people have in its capacity to function correctly. Credit downgrades led to an increase in the price of future borrowing. Negotiations are rendered useless when anger is allowed to fester.
Alternate Courses of Action to Shutdowns
The vast majority of industry professionals are of the opinion that shutdowns pose an intolerable risk that should be avoided. Nevertheless, legislative solutions that would have established automatic continuing resolutions and bipartisan budgets have been unsuccessful in Congress on multiple occasions.
Some have suggested altering the voting rules in order to deter members from using hostage tactics or placing fines on members who prolong closures. More emergency funding or carve-outs could lessen the severity of the repercussions, but they would also reward those willing to play with danger. In the absence of significant changes to the way appropriations are handled, it is likely that shutdowns will continue to be a risk.
People with lower incomes in the United States who are dependent on government services and programs are hit the most by shutdowns. Even missing one paycheck can have a disastrous effect on one’s financial situation.
They damage the credibility of the United States as a trusted and steady partner on the international stage. Other nations interpret government shutdowns as evidence of dysfunction and an inability to govern effectively.
During shutdowns, public support for Congress plummets, which fuels additional suspicion in politicians and government institutions at a time when this cynicism is already at an all-time low.
Contractors and small enterprises who derive the majority of their income from government contracts and projects have suffered significant losses as a result. Many companies never fully recover and are consequently obliged to let staff go.
When key government employees like intelligence analysts, TSA agents, border patrol, and others who are essential to securing the country have to work without pay, national security is put at risk. There is a drop in morale.
The National Institutes of Health (NIH) and the Centers for Disease Control and Prevention (CDC) have ceased their research, which will delay the development of new treatments and medical breakthroughs. The clinical trials can no longer proceed.
The number of people going to parks, museums, and other tourist places has dropped significantly, which is bad news for local companies and economies that are dependent on spending on recreational activities.
The backlogs of applications for visas, passports, and legal processes continue to rise at an exponential rate and take extensive amounts of time to clear up, causing needless misery.
Even once the closure has been resolved, it will be difficult to totally restore the damage done to the economy and to people’s well-being by the extended disruptions. There will be consequences in the long run.
Polls repeatedly reveal that the majority of citizens are opposed to politicians using threats of government shutdowns as a political ploy, and instead urge their leaders to find a way to compromise.
Concluding Remarks
Even though they are used as a political tool, government shutdowns impose very real hardships on the American people and have long-term costs that far outweigh any imagined benefits. They are detrimental to the well-being of millions of people as well as to the economy, public services, and faith in governance. To put an end to the never-ending cycle of interruptions brought on by partisan impasses over the budget, alternatives are required. To the advantage of all Americans, reforming the process of spending money could help strengthen existing institutions and reduce the likelihood of future closures.
