Government Shutdown: What it Means for Average “Joe”

    October 1, 2013
    Lacy Langley
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The nation is waking up this morning to a government that is shutting down. There was no agreement reached last night as the famous Ohio clock struck 12, and now the country must move forward in this uncertainty. About 800,000 federal workers will not go to work today, which according to CNN, could cost federal workers put on furlough as much as $1 billion dollars a week. Most non-essential government programs will be suspeded. This is the first government shutdown since the winter of 1995-96, during the Clinton administration.


So, that actually happened. Now how will it affect the everyday public? Well, according to AP, museums along the Washington Mall will be closed, as well as state parks and the white house visitors center. Agencies like NASA and the EPA will run on essentials only, and those will only go in to change email and phone greetings, and other preparations for being closed.

Essential government employees, like food inspectors, air traffic control, and border patrol will stay on the job. The military will continue to be paid, thank goodnes. We haven’t sunk that low yet, but many federal workers will not be paid until this standoff is over. The postal service will continue to operate, as it is self-funded.

Enrollment will still open today for people looking for insurance under the Affordable Care Act, aka Obamacare. Social Security checks will still be dispersed, and Medicare and Medicaid fees will still be paid to doctors on time.

The economic impact from the government shutdown could be enormous. The effects will ripple into related businesses cutting back on non-essential employees, which will encourage those employees to cut back on their spending. There will also be hesitation in investments and an undeniable interruption in markets.

The economic impact on us everyday people, could very possibly be at least 10 times greater than the simple calculation of wages lost by federal workers, said Brian Kessler, who is an economist with Moody’s Analytics. His firm estimates that a three to four week shutdown will cost the economy about $55 billion dollars!

“What’s maddening is this is all totally voluntary. It’s totally unnecessary,” said Kessler.

Hopefully the shutdown will not last very long. Hopefully our Congress can get it together soon. But if they don’t, the impact to our economy will grow significantly worse in the coming weeks. For example, many federal contractors will have to cut staff if they don’t get their usual government business. Small businesses will be stalled, as the government will not be processing loans for them.

Even travel and tourism will be effected, as national parks and monuments will be closed and visas will not be issued to foreign travellers. We will just have to wait and see what this government can do in the coming days and weeks to repair our country, hopefully before things get too muddled.

Image via youtube

  • Is it Me

    Is it me or is it obvious that since 9/11 there has been a war on the American people. Not by terrorists but by our own government. Literally, nothing has changed in the terrorist world — in fact they have gotten stronger since we are bombing many innocent people overseas. We just created more of them. However, everything has changed here in the United States.

    When you strip away all the media’s illusions, this country has become much much worse. It isn’t a democrat or republican issue either. We have had both parties in office and things have gotten much worse. It is time for America to wake up and realize the war is not against terrorists — it is against us.

  • http://newbizshop.com Derek

    People need to stop blaming the president. It’s the other party who is the issue. They making 8 year’s of Obama a nightmare and us american’s have to suffer these 8 year’s.

    I guess I can say hello to my friend who lives next door. He works for the state and now pissed off he is not getting paid. Yes, he is pissed off at congress. Good job congress, you have the american people hating you.

    I hope the other countries go on t.v. and call USA the laughing stock of the world and a bunch of idiots. Our goverment, did this to us. In fact, have China demand the money back we borrowed.

    • Reality

      All politicians are the same. It doesn’t matter what party they are from. They are all at fault. Bush didn’t do anything. Obama hasn’t done anything.

      Don’t people get it? It is about those in power gaining more money and power. That is all it has ever been.

      Anyone who subscribes to the notion that one party is better than the other truly doesn’t know history or politics. He or she is also very naive and foolish.