Damn! Before yesterday I’d never thought a government could collapse or run out of money to hold up its economy! Non-essential government services like national parks and NASA have been closed, they have only $3 trillion left to repay debts & bills (ONLY? They should be so effing lucky!), and 800,000 people have been furloughed (put on unpaid leave)! With no backpay if the government gets up and running again!
Obama gave his speeches yesterday explaining that this could have very easily been avoided. It’s only happening because the Republicans in Congress refused to fund his proposed reforms to the healthcare system, known as Obamacare. On top of that, the Democrats in the Senate have rejected a Republican proposal to fund the federal government by delaying Obamacare’s implementation! In summary, Obama, the Democrats & Republicans are disagreeing on how best to manage their budget. Effectively, Congress is blaming Obama for the shutdown while he claims they’re holding the country to ransom. Wow, so how much power does the President really have then?
Government shutdowns have happened before back in 1996, 17 years ago during Bill Clinton’s presidency, and another 16 times before that. However, as the economy wasn’t recovering from a recent crisis back then it’s hard to know exactly how good the comparison is. It’ll also be less likely that whatever was done to rectify it then will work now. Which begs the questions: exactly what will be done now? And how exactly will it affect the rest of the world? We’ll have to wait and see.
Oh yes, important date to keep an eye on: 17th October. I admit I forgot why, I’ll type it up when I find out again.
And now I remember. If a budget deal is not agreed upon, that’s the date the US government is calculated to hit its debt ceiling, i.e. run out of enough money to repay its debts!
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