Saturday, December 9, 2023

U.S. Government Shutdown Measures and What Impact They Will Have on the U.S. Economy Will Learn Details | US Shutdown: What is America’s shutdown and what impact will it have on the US economy?

US shutdown: There is a lot of talk about shutdowns in America right now. If there is no agreement between Democrats and Republicans on a short-term spending bill by midnight on September 30, a shutdown will be imposed in the US. A U.S. government shutdown is a situation in which the U.S. government is unable to provide sufficient funding for agencies and government operations. The gap between government spending and government revenue, i.e. the budget deficit, has widened enormously.

There is no consensus between the Democratic-majority Senate and the Republican-controlled House of Representatives in America.

No agreement has yet been reached on the budget proposals between the Democratic-majority Senate and the Republican-controlled House of Representatives, and now only ten days remain in which American lawmakers have time to prevent a possible shutdown in the US. Should a shutdown occur, the U.S. economy will suffer a huge loss of $6 billion each week, while U.S. GDP will see a 0.1 percent decline through the fourth quarter.

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America’s national debt exceeds $33 trillion

Due to fears of a government shutdown, America’s national debt has risen to over $33 trillion. There is already a possibility of recession in America due to the auto workers’ strike, the economy struggling with inflation, and rising gasoline prices. The government is under pressure regarding the budget. At the same time, the rating agency Fitch lowered the creditworthiness of US states from AAA to AA+ in August. Fitch cited America’s increasing debt and party instability as reasons for this. Afterwards, Fitch also warned Congress.

What is the shutdown in America and why is it a concern?

The shutdown in America is a cause for concern because it applies certain special conditions, such as:

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During the shutdown in America, most services are suspended. However, the services we can’t live without continue to function – like the Department of Homeland Security and the FBI.

During the shutdown, 40 percent of government employees will be placed on unpaid leave and told not to work. Almost all of them are non-defense employees; the army and employees associated with these services will not be sent on leave.

When did the shutdown occur?

Including closures from 1981 through the administration of former US President Donald Trump, there were 14 closures. If the shutdown in America begins on October 1st, it would be the 15th shutdown. The 35-day shutdown of the previous US administration of Donald Trump was the longest shutdown in US history.

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Nation World News Desk
Nation World News Desk
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