October 7, 2013 Comments Off on Should we worry about the US government shutdown?
Should we worry about the US government shutdown?
The United States federal government partial shutdown began last October 1, 2013 and will continue for an indefinite period until a consensus is reached between the Republican-controlled House of Representatives and the Democrat-controlled Senate. The main issue is the Republican’s opposition of the Affordable Care Act or better known as Obamacare, which was signed into law in 2010. On the shutdown, the Republicans, influenced by its ultra-conservative Tea Party members, demanded that the Senate agree to delay implementation of Obamacare law in exchange for passing a bill to fund the government and keep it running. The Senate opposed the bill and the money to keep the government open ran out on midnight.
How will this affect the economy? According to analysts, the effect of the shutdown will depend on how long it will continue. The thousands of furloughed federal government workers will feel the immediate impact. If the shutdown lasts for several weeks, consumers, businesses, and investors could think twice about spending their money and this could put a dent on the already struggling economy. Long-term shutdown could have a huge impact on Wall Street as markets depend on supply and demand and political stability. And if Wall Street falls, markets all over the world could suffer as well and this could have a devastating effect on global economy.
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