My budgeting and appropriations could have been better, but 2023 has shown that the United States of America could be doing better, too. The government shutdown has become a political weapon between the Republicans and the Democrats.
The latest near-government shutdown makes it the third in 2023. Here is a summary of how the U.S. government shutdown could impact daily living. Possible consequences of the government shutdown include airport and flight delays, as was seen in 2019, due to shortages of TSA workers and air traffic controllers. All 21 Smithsonian museums and the National Zoo could also be closed during this time.
Immigration courts may be shut down, leading to further backlogs in cases. Additionally, around 10,000 low-income children will immediately lose access to Head Start programs if the shutdown persists.
Food safety inspections by the FDA may be disrupted, and funding for WIC could be at risk. Transportation construction work across the country could be paused, including projects to repair subway tracks, rehabilitate buses, or purchase new ones.
National parks may also be closed, although some are publicly accessible with limited visitor services. Furthermore, federal and military service members will not receive payment until the shutdown ends, with non-essential employees being laid off or suspended.
What does it mean for the U.S. economy?
A government shutdown can have significant economic effects, hindering growth and causing uncertainty, especially if they persist. They can impact the country’s economy in several ways, including raising the unemployment rate, lowering the growth in gross domestic product (GDP), and increasing the cost of borrowing. These factors can lead to a less stable economic environment, ultimately harming businesses and individuals.
Some time ago, President Biden boasted about the all-time lowest unemployment rate in 2023. However, if a government shutdown occurred in January 2024, it could severely hamper Bidenomics. Moreover, it would have a significantly negative impact on Biden’s presidential campaign. Whether the GOP will intentionally use this situation to gain an advantage over Biden and favor the ex-president, Mr. Trump remains to be seen.
According to the statement released by the White House on September 29, 2023, the cost to the U.S. economy would be massive – American Small Businesses would lose out on more than $100 million in critical financing daily. Additionally, each shutdown week could cost $6 billion and cut GDP growth.
Whether you are a hard-working U.S. citizen, small business owner, or federal employee, you will feel the impact in your bank account. The long-term consequences for the military could include delayed salaries and critical supply shortages.
Three weeks and still going strong – The speaker, Mike Johnson
According to the Wahington Post, on November 14, 2023, House Speaker Mike Johnson (R-La.) said, “This is a gift to the American people.”
The latest bill that was passed serves two functions. Firstly, it provides funding for military and veteran’s programs, agriculture and food agencies, and the Departments of Transportation and Housing and Urban Development until January 19, 2023.
Secondly, it states that State, Defense, Commerce, Labor, and Health and Human Services departments will expire on February 2.
However, approval from the upper chamber is needed to prevent a government shutdown on Nov. 18 at 12:01 a.m.
What next?
The federal funding is secured at least until February 2, 2024, and Israel gets its emergency funding of $14.3 billion – a big win for the newly elected speaker of the House.
How the newly elected Speaker will handle the growing divide between Republicans and Democrats remains to be seen. The upcoming presidential election is expected to be another close contest between those two parties. Can Mike Johnson keep the House in order while the country wobbles on the edge of authoritarianism?