Have you ever experienced a power outage but never quite knew the reason for it? Well, a government shutdown has similar effects on the economy, as many are unaware of its meaning and outcome. On October 1, the federal government of the United States shut down at 12:01 a.m.
According to CBS News, this particular shutdown was caused due to a disagreement to extend government funding. A government shutdown typically occurs when Congress fails to pass appropriation bills that fund operations of federal agencies and programs before the end of its fiscal year.
Due to the failure to pass the bills at the end of the fiscal year, which occurred on September 30, the government shut down immediately after midnight.
However, this is not the first time it has happened, as many funding gaps have led to shutdowns since the 1980s. The longest shutdown has been 35 days, and the most recent occurred from December 22, 2018 to January 25, 2019.
Robert Flynn, an AP US government teacher at St. Teresa’s Academy, is no stranger to the law. He stressed the severity of the scenario: “Some people might get laid off,” Flynn said. “Many are going without pay whether they have to continue doing their job or not. Eighty to 90 percent of The Internal Revenue Service (IRS) workers, for example, still have to go to work.”
Flynn expanded on his reasoning.
“Some people don’t have access to their work resources from home, like their work email,” Flynn said. “Some people are at home not doing their job because they can’t and are not getting paid, others are doing their job from home and not getting paid and a very small number who are still going to work, doing their job and not getting paid.”
Flynn then expressed that in past shutdowns, when the government finally agrees upon a spending bill, the people who went without pay were recompensated the money that would have earned in that time, regardless if they did their job or not.
In this case, the government would have to come to that same conclusion if and when they agree.
Flynn then explained that this unpaid time period is a major hit on families.
“Most American families cannot withstand a $500 to $1000 dollar surprise expense,” Flynn said. “Most American families live paycheck to paycheck.”
In Kansas City, there are roughly 30,000 residents who work under the federal government. The potential of this shutdown’s outcome could do real harm to families. This could also affect small corporations like small business and firms that receive funding from the government or file their taxes while this occurs.
As of right now, there are no protections in place for the effects of this shutdown; however, it is imperative to stay informed on what the federal government does and its ultimate impact on the economy.
