US Government Shutdown Now in Effect Due to Budget Row

Because of the budget row in Congress, a US government shutdown is in effect. America has begun a partial shutdown due to the failure of the Senate and House of Representatives to agree on the budget. The House, which is dominated by Republicans, pushed for a delaying of the Obamacare or President Obama’s healthcare reform program.

Not the first or the worst

This is the first event of its kind in the United States in 17 years. The last shutdown occurred during the term of Pres. Bill Clinton, one in 1995 which lasted for five days and again in 1996, which lasted for 21 days. The very first shutdown happened in 1976 and there have been a total of 17 deadlocks due to budget disagreements in the history of the most powerful nation in the world.

Presidential tweet

A few minutes after the deadline passed, a tweet from President Obama confirmed the shutdown. He posted: “They actually did it. A group of Republicans in the House just forced a government shutdown over Obamacare instead of passing a real budget.” The budget office of the White House informed agencies of the government that they should initiate an orderly shutdown a few minutes before the deadline was reached.

Consequences of the deadlock

On Tuesday, the dollar has already fallen and more than 800,000 employees of the Federal government can’t expect back pay for the days that they will be on leave. It has been predicted by Goldman Sachs that should the deadlock last for three weeks, the GDP for the quarter will decrease by 9%.

During the shutdown, passport and visa applications will not be processed. Benefit checks of veterans as well as pensions will be delayed. Loans for small business and home loans backed by the government will not be processed. Tax refunds will also be left hanging.

The various offices of the federal government are affected by the shutdown. The State Department will continue to function for a limited period of time only. Staff and personnel from the Departments of Defense, Energy, Education and Health and Human Services will have to be sent home. National parks, public zoos, museums, and the Smithsonian will close. Tourism will temporarily be on hold in the United States.

On the other hand, the postal service will continue, and the services of the Department of Justice, the Department of Homeland Security, and the Federal Reserve will not be disrupted. Food inspections and air traffic control services will also continue uninterrupted.

Bitter divide

Speaking to the media, Speaker John Boehner of the Lower House said that the House vote was based on their desire to provide fairness to the American people under Obamacare. He said that he hoped that a bipartisan conference would resolve the issue for the benefit of the people. The Democrats who dominate the Senate are not expected to make concessions on Obamacare. This divide eventually led to the government shutdown. The Democrats have referred to the Republicans as bullies, and the halt in non-essential operations of the US government is being blamed on them. The deadlock could not have come at a worst time because if the disagreement should continue, the USA will breach the debt ceiling by mid-October.