No Shutdown!
Conversations surrounding a potential government shutdown are continuing as the funding of the federal government for the fiscal year expires Sept. 30. Despite statements from House Speaker John Boehner and Senate Majority Leader Mitch McConnell saying they have no interest in shutting down the government, it’s not looking like Republicans and Democrats in Congress will come to an agreement prior to the Sept. 30 cut-off date.
Generally, a government shutdown is a waste of time and resources. The shutdown in 2013 had economic impacts on our nation. It was estimated that the shutdown cost 2013 fourth quarter GDP growth somewhere between $2- and $6 billion in lost output. The council of economic advisers after the shutdown estimated we saw reduced fourth quarter GDP by .25 percent and reduced private employment by 120,000 in the first two weeks in October.
Other than economic impact, what effects would a 2015 government shutdown have?
• Social Security and Medicare: Checks will be sent out, but new applicants likely will not have application processed until the shutdown concludes.
• Law Enforcement: Public safety will likely continue to be funded, but some functions could be delayed. In 1996’s shutdown, bankruptcy cases were suspended, hiring law enforcement officers was postponed, and delinquent child support cases saw delays.
• Federal Employees: in 2013, more than 800,000 federal workers were not working and were not paid. Furloughed workers will still legally have to work, but will not be paid until funding resumes.
• National Park: Federally funded tourists attractions will be closed- museums, monuments, and national parks. After the shutdown in 2013, it was estimated the shutdown resulted in more than half a billion lost dollars in visitor spending nationwide.
• Passports: Passport processing employees will be sent home during a shutdown. This could lead to more than 20,000 applications by foreigners for visas going unprocessed each day, and the airlines and tourist industry could lose millions.
• IRS: The IRS would not be able to verify income and Social Security numbers should the government shut down. In 2013, this resulted in a backlog of 1.2 million requests, delaying mortgage and loan approvals.
A government shutdown is a waste of resources.
Our nation must participate in fiscal responsibility — especially when it comes to our federal budget. The next president will have 100 days to release his or her first budget. This is the opportunity for our next president to make priorities evident — including fiscal responsibility.
With our national debt as high as $18 trillion dollars and only growing, we must urge our next president to address this debt in his or her first budget. Addressing this debt today is essential in beginning the downward trajectory for our burgeoning debt, allowing our future generations to live with economic prosperity.
