By Betselot Wondimu ‘15
On October 1, the federal government shut down due to Congress’ inability to pass a budget bill, which details how much money is to be allocated to each government activity, program, law, etc. within the upcoming fiscal year. The shutdown was primarily the result of Republicans in the House of Representatives trying to halt the implementation of Obamacare, signed into law in 2010, and Democrats’ refusal to compromise on that issue.

The effects of government shutdowns most immediately hurt government workers. During a shutdown, a majority of the federal government’s programs and activities are suspended and “nonessential” employees are furloughed, or temporarily laid off without pay, since there is no agreement as to how money should be appropriated throughout the government. With about two million Americans working for the federal government – 350,000 in the Washington Metropolitan area – about 40 percent of them will be furloughed according to ABC News. The last government shutdown occurred from 1995-96.

These furloughs of government workers will reveal how important their work is for everyday Americans. Federal monuments, parks and zoos closing will strip away sites and activities of recreation from the public. The restricted functioning of the Department of Health and Human Services will lead to many Head Start programs not getting their annual federal grants. Furthermore, the Internal Revenue Service (IRS) has laid off about 90 percent of its workers, meaning that Americans cannot get as much help on their taxes. Similarly, the limited staffing at the Federal Housing Administration (FHA) will result in huge delays in loans being approved.

To add to this predicament, the nation is expected to surpass its debt ceiling sometime in late October. The debt ceiling is the maximum amount of money the federal government can borrow from other countries—usually in the form of bonds. The ceiling is usually routinely raised every time Congress sees it fit to put more money in the budget plan. But this has not been the case in recent years.

The government shutdown as a consequence of the inability to pass a budget puts Congressmen in an uncomfortable situation. Since it is still unclear where money will be allocated, some House Republicans are trying to make deals with President Obama; they won’t vote to raise the debt ceiling unless cuts are made to Medicare, Social Security and other entitlement programs. If the ceiling is not raised before the government exceeds it, the United States would fail to pay back the money it has borrowed from other countries and go into default. This has never happen before, but economists and politicians know one thing for sure: it would rattle the American and world economy.

The government shutdown as a consequence of the inability to pass a budget puts Congressmen in an uncomfortable situation. Since it is still unclear where money will be allocated, some House Republicans are trying to make deals with President Obama; they won’t vote to raise the debt ceiling unless cuts are made to Medicare, Social Security and other entitlement programs. If the ceiling is not raised before the government exceeds it, the United States would fail to pay back the money it has borrowed from other countries and go into default. This has never happen before, but economists and politicians know one thing for sure: it would rattle the American and world economy.