American federal government was partially closed in the beginning of October due to the disagreement of two parties about 2014 financial budget. While the original cause of shutdown seems to be Obama health care policy. Obama wants to provide more benefits to people who live in poverty. Barack Obama said House Republicans are on an “ideological crusade” against his health-care law. As a result, the tax charged increased for someone needs to pay for the costs.

The shutdown caused around 800,000 federal workers off the job, which means they have no income. Consequently, this results in a negative effect on consumption. In another word, American economy is facing a challenge. Tourism industry is hit since national garden and public museums also stop service.  This probably triggers more serious financial recession if this hassle cannot be solved in half month, just like what happened in 1996. It is reported that there was approximately 1.4 billion losses at that time. In long term, the close of Whitehouse may become a threat to the America’s relationship with other countries and even worldwide economic stability.

Comment ZeXin Zhong’s blog:

https://blogs.ubc.ca/qq215535891/2013/10/07/the-obama-health-care-plan/