The Shutdown arrived at midnight.
Republican House and Democratic Senate voted on a spending measure that continues to pay military service women and men. But today, 800,000 federal workers went to work to change voicemails, turn off computers, printers and the lights on the government until Congress agrees on a budget or continuing resolution to keep the government running.
Republicans and Democrats are far apart on agreeing to a budget or a continuing budget resolution to keep the government working. Here is where we are.
What Republicans Want or Offer
- Push ObamaCare “individual mandate” implementation to one year from now.
- A conference committee between the Senate and the House to negotiate a budget.
- Separate votes in the House to fund specific entities like veterans, the District of Columbia and veterans affairs.
- End federally provided health care for the president, members of Congress and their staff while funding the government for 11 weeks.
- Remove the tax on medical devices that is estimated to raise 30 billion over 10 years to help fund ObamaCare.
- Anti-ObamaCare amendments.
Tea Party Wants
- Total elimination of ObamaCare.
- Not to negotiate with Democrats.
What Democrats Want
- No Conference committee because they believe it will undermine ObamaCare
- Keep the medical device tax that Republicans are against. The tax is expected to provide over 30 billion dollars to help fund ObamaCare.
- A clean budget that excludes any provision to defund ObamaCare
What We Know
- 533 Congressional members in the House and Senate continue to be paid during the shutdown. (The 27th amendment prevents Congress from changing its pay.)
- The President continues to receive his salary because it is considered mandatory pay.
- If shutdown goes to late October, disability and pension checks could stop for elderly and ill veterans.
- 3.3 million injured military veterans could be affected.
- The Federal Government is the nation’s largest employer.
- Democrats and Republicans say a spending bill that doesn’t contain ObamaCare stands a good chance of passing with support from moderate Republicans and the Democratic minority.
- Stock market hasn’t panicked yet.
What We Don’t Know
- Perhaps the biggest thing we don’t know is, how long this will last.
- The long term implications to the country’s economic growth.
What this means for the American economy? and how this will impact the World
- America is the largest economy in the world. America activity impacts world markets and economies.
- The Government ran out of money on October 1.
- It will default October 17th without an agreement, as the nation reaches its debt ceiling (credit limit).
- 800,000 federal employees furloughed equaling 1 billion dollars a week in salary.
- The billion dollars is the pay that goes to federal employees. That is money that helps drive the economy. Brian Kessler, economist with Moody’s Analytics predicts, The economic impact could be 10 times greater than the simple calculation of wages lost by federal workers. His firm estimates that a three to four week shutdown will cost the economy about $55 billion.
That would mean that the economic impact from a month-long shutdown would be roughly equal to the combined disruption caused by Hurricane Katrina and Superstorm Sandy, not counting the property damage that accompanied those storms. http://money.cnn.com/2013/09/30/news/economy/shutdown-economic-impact/index.html
- The Federal Reserve has been operating with low interest rates, the shutdown may mean raising interest rates. This would be bad for both the American and global economies.