Millions of Americans Prepare for Government Shutdown: Impact on Wages, Welfare, and Politics

Tuesday, 09/26/2023 06:05 WIB

Photo: The United States flag flies at half-mast at the US Capitol in Washington, DC, Thursday (8/9/2022) after the death of Queen Elizabeth II of England. (Photo by OLIVIER DOULIERY/AFP via Getty Images)

Jakarta, CNBC Indonesia – Millions of Americans are STARTING to prepare to stop paying wages and welfare checks in the next few days. This is in line with the US getting closer to closing (shutdown) government this weekend.

Four months after narrowly avoiding the prospect of default (default) more serious debt, the world’s largest economy is once again on the verge of turmoil and heading towards a government shutdown.

The Republican-led House of Representatives was unable to pass a series of bills that would normally set the department’s budget for the next fiscal year, which began on Sunday.

The party leadership doesn’t even have the votes to advance a short-term funding bill at 2023 spending levels to keep the government open past midnight next Saturday.

A government shutdown would endanger the finances of workers at national parks, museums and other places that operate on federal funds, but it could also pose significant political risks for President Joe Biden as he seeks re-election in 2024.

“Funding the government is one of Congress’ most basic responsibilities,” the Democratic Party politician told reporters at the White House, quoted from AFPTuesday (26/9/2023).

“And if Republicans in the House aren’t doing their job, we should stop electing them.”

The Biden administration also warned that 7 million people who depend on food assistance programs for women and children could also see funding cut.

The funding stalemate emerged after House Republicans refused to back government spending levels agreed between Biden and Speaker Kevin McCarthy, the top Republican in Congress, that would have kept the government moving forward.

Another key issue is the request for additional aid for Kyiv, after Ukrainian President Volodymyr Zelensky visited Congress last week and asked for more weapons to fight Russian forces after 18 months of war.

Both parties in the Senate support the $24 billion relief bill. But a handful of hard-line Republicans in the House have threatened to block any funding efforts that include such aid.

“UNLESS YOU GET EVERYTHING, TURN IT OFF!”, demanded former president Donald Trump in a post on his Truth Social platform late Sunday as he led calls for more hard-line Republicans to do more.

Budget votes in Congress often end in deadlock, with one side using the prospect of a budget closure to seek concessions from the other side, but usually to no avail.

The prospect of a shutdown comes just four months after the United States nearly defaulted on its debt, which could have had dire consequences for the US economy and beyond.

Moody’s, the only major ratings agency that maintains a maximum score for US sovereign debt, warned that the latest drama could threaten its top ratings status.

The US government employs more than two million civilian workers, as well as uniformed military personnel and federal contractors. Civil servants deemed “non-essential” will be asked to stay home during the government shutdown, and only be paid when they return.

Watch the video below: