Political disagreement from both the Democrats and Republicans has led to a shutdown for the U.S. Government on October 1st. They have failed to agree on a new budget for the 2013-2014 financial year, therefore they had to shutdown due to no legal payment agreement made for non-essential staff working in the government. The republicans were against Obamacare, however Obama’s democrats decided to take a stand.
800,000 government employees were furloughed, whereas 1.3 million employees had to continue to work but without pay until an agreement has been made. If employees continue to be without pay, they will spend less, they might also have difficulty supporting themselves and their families. Also, if this eventually leads to a 2-week shutdown, it will take 0.3% off US GDP.
This incident reflects how disagreements and conflicts within any corporation could affect the operation of their business. Not being able to settle on an agreement, or not coming to a solution quick enough could have short or long-term effects on the business. This is clearly an issue of management that led to a fault in the operation of the entire government. It is necessary for the government to come to a budget agreement as soon as possible before it has drastic changes on the economy.
Bibliography:
Wearden, Graeme. “US Shutdown: A Guide for Non-Americans.” The Guardian. N.p., 1 Oct. 2013. Web. 6 Oct. 2013. <http://www.theguardian.com/world/2013/sep/30/us-shutdown-explainer-non-americans>.
Fitzpatrick, Meagan. “U.S. Government Shutdown: What to Expect If It Happens.”CBCnews. CBC/Radio Canada, 30 Sept. 2013. Web. 6 Oct. 2013. <http://www.cbc.ca/news/world/u-s-government-shutdown-what-to-expect-if-it-happens-1.1870936>.
Plumer, Brad. “Absolutely Everything You Need to Know about How the Government Shutdown Will Work.” The Washington Post. N.p., 30 Sept. 2013. Web. 6 Oct. 2013. <http://www.washingtonpost.com/blogs/wonkblog/wp/2013/09/30/absolutely-everything-you-need-to-know-about-how-the-government-shutdown-will-work/>.
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