Friday, September 29, 2023

Countdown to Chaos: Potential Consequences of America’s Government Shutdown

 


A government shutdown this weekend is akin to an economic and financial eclipse, casting darkness over the paychecks of millions of Americans.


With another government shutdown looming this weekend, it is easy to assume that this particular governance failure is happening more often. However, when we examine the historical context, we find that far fewer shutdowns have taken place in the past two decades compared to the turbulent periods of the 1980s and 1990s. While funding gaps between lawmakers and government officials remain relatively rare, the concerning trend is that when they do occur, they tend to last longer. This extended gridlock in the halls of power not only disrupts vital government services but also underscores a deepening divide in the nation's political landscape.

The politics behind these shutdowns have taken on increasingly bizarre characteristics, marked by ideological clashes, partisan polarization, and brinkmanship tactics. The stakes are high, the public's patience is wearing thin, and the consequences of a prolonged shutdown are more dire than ever. With each passing hour and episode of this political theater, the nation's trust in its leaders wanes, leaving citizens and institutions alike on edge, uncertain about the path forward for effective governance.

Around two-thirds of the money the government spends is mandatory, and it goes to programs like entitlements. The rest, called discretionary spending, needs approval every year. In theory, it is simple: the President suggests a budget, Congress talks about it, and they make it a law before the new fiscal year starts on October 1st. But in reality, Congress has only met this deadline three times in fifty years. Usually, they use temporary plans to keep the money flowing. Since the 1980s, not having enough money has caused the government to shut down.

Ronald Reagan argued with a House of Representatives controlled by Democrats and had a few government shutdowns. Republicans led by Newt Gingrich, the House Speaker, challenged Bill Clinton twice. Today, many people in Washington expect a shutdown not because of differences between political parties, but because of disagreements within the House Republican group.

With a Democrat as the President, Republicans are again interested in cutting government spending, which they stopped doing during Trump's time in office. But House Speaker Kevin McCarthy is having a hard time getting his group to agree on how to restart talks about spending after they set the spending levels earlier in the year when they agreed to raise the debt ceiling. Mr. Gingrich thinks this is a tough and risky political situation. He said that when he had more people from his party in Congress, he could navigate difficult fights more easily. In comparison, Mr. McCarthy has to listen to congressmen like Matt Gaetz from Florida, who, according to Mr. Gingrich, would likely vote against anything just because he doesn't like McCarthy.

The current speaker gave in to the hardliners' wishes and spent days trying to pass separate bills for government spending and other policies. These plans would cut spending a lot and include unrelated things like immigration rules. But they won't pass in the Senate or be signed into law by Joe Biden, so a government shutdown seems likely.

The other choice is to pass a bipartisan bill from the Senate to prevent a shutdown. But if Mr. McCarthy sides with a reasonable, bipartisan majority in the House, it could lead to a vote on whether he should keep his job as the Speaker. Donald Trump isn't helping much. His position can be summarized in one sentence: If you don't get everything you want, shut down the government!

At the same time, some members of the hardline House Freedom Caucus are now mad at each other instead of Mr. McCarthy. Chip Roy, a member of the Freedom Caucus, tried to make a deal on government spending earlier, but his allies rejected it. He told Fox News that he doesn't really know what to say to his fellow Republicans except that they are in for a tough time, and maybe they deserve it. Mr. McCarthy's best chance of staying the Speaker might depend on these divisions within his group.

What Happens? 

As previously mentioned, the federal fiscal year kicks off on October 1st, yet Congress has yet to secure the necessary funding to sustain government operations. The Senate has managed to greenlight a bipartisan bill that could stave off a shutdown until November 17th. However, Kevin McCarthy, the Republican Speaker of the House of Representatives, faces an uphill battle in persuading staunch conservative members of his party to support this temporary funding measure. On September 22nd, the White House issued orders for federal agencies to brace for what would be the fourth government shutdown in a decade. What exactly transpires when the United States government grinds to a halt?

Certain essential functions of the government will remain operational. Veterans' Affairs Department-managed hospitals, responsible for providing care to millions, will continue serving patients. Postal services will persist, as the United States Postal Service is financed through revenue generated from stamps and services, rather than relying on tax dollars. Police, members of the armed forces, air-traffic controllers, and Transportation Security Administration employees, responsible for airport passenger screening, will all carry on with their duties. However, akin to federal workers placed on "furlough" (instructed not to come to work), they will not receive their paychecks during the shutdown. Following the previous 35-day shutdown commencing on December 22nd, 2018, Congress passed legislation guaranteeing back pay for the 800,000 furloughed workers, who represented a significant portion of the 2.1 million non-postal federal workforce. Nonetheless, prolonged shutdowns still pose financial hardships for federal employees.

Certain government services will scale down their operations. Beneficiaries of Social Security (pensions) and Medicare should continue receiving their payments, though new applicants may face delays in enrollment and disbursement. Other federal functions, however, will halt either immediately or gradually as agencies deplete their allocated funding.

In past shutdowns, the Environmental Protection Agency suspended inspections of chemical facilities, drinking-water providers, and sites handling hazardous waste. The Food and Drug Administration might cease inspections of slaughterhouses and other food-production facilities. States have been compelled to fill in for federal obligations in welfare programs. An extended shutdown could lead to the suspension of food-stamp payments, heightening the risk of hunger among impoverished families. National parks may remain open but with significantly reduced services. Immigration courts, which are already strained, may struggle to function, potentially hindering individuals seeking federal approval for home or business loans.

The longer a shutdown persists, the greater the risk of unforeseen consequences. These may include fatal accidents caused by unrepaired bridges or highways and long-term health issues resulting from unfunded research. Opportunities may be lost as well, with potentially successful businesses unable to launch due to the Small Business Administration's inability to process loans. Some lawmakers are contemplating a "discharge petition" on the House floor, a move that would enable them to force a vote on stopgap funding without Mr. McCarthy's involvement. Although such a measure wouldn't avert a shutdown by October 1st, it could expedite its resolution. If all else fails, the impending shutdown could prove particularly detrimental. In 2018, Congress had already passed five of the 12 appropriations bills required to keep the government operational, whereas this year, none have been enacted thus far.

 

 

 

  

 Notes

 

Dionne, E. J. (1997, July 27). One Big Mess, In Search of a Big Idea. Retrieved from Brookings: Commentary: https://www.brookings.edu/articles/one-big-mess-in-search-of-a-big-idea/

O'Kruk , A., & Luhby, T. (2023, September 29). What Happens if the Government Shuts Down: An Illustrated Guide. Retrieved from CNN Politics: https://www.cnn.com/2023/09/29/politics/what-happens-government-shutdown-dg/index.html

The Economist. (2023, September 28). Nihilists in Washington: America’s Next Government Shutdown Could Be the Strangest Yet. Retrieved from https://www.economist.com/united-states/2023/09/28/americas-next-government-shutdown-could-be-the-strangest-yet

The Economist. (2023, September 27). The Economist Explains: What Happens If America’s Government Shuts Down this Weekend? Retrieved from https://www.economist.com/the-economist-explains/2023/09/27/what-happens-if-americas-government-shuts-down-this-weekend

Urvoy, H. (2023, September 29). US Government Shutdown: What to Expect. Retrieved from Euronews: https://www.euronews.com/2023/09/29/explainer-what-happens-if-the-us-government-shuts-down-in-a-few-days

VOA News. (2023, September 29). What's Ahead if the US Government Shuts Down? Retrieved from https://www.voanews.com/a/a-government-shutdown-is-nearing-this-weekend-what-does-it-mean-who-s-hit-what-s-next-/7290228.html

 

 

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