The US government has shut down a couple of days ago and thousands of workers are made redundant and it has brought numerous companies to halt in the US economy. It happened because the US government could not vote on a new budget plan for the upcoming financial year. The shutdown does not mean that social security, medical payments and the military services will stop, the essential services will still continue. However, thousands of workers who used to work at the Pentagon will be made redundant and put on leave without pay. The US government shutting down will have a couple effects on businesses. First of all, people are being laid off without pay, this means that the national income will decrease, because the worker’s expenditure decreased as they are being made redundant without pay.

A problem stated in the article would be the manufacturing of Blackhawk Helicopters. Blackhawk helicopter’s production line will not be able to continue as there were no government representatives to ‘sign off’ products. US is the world’s leading economy, the military industry is accountable for a huge portion of the countries’ economic growth, as a result of the government shut down, 400,00 staff from the defence department, 40,200 from the commerce department, 12,700 from energy department and 18,500 from the transportation department were let go. US already owes China 16 trillion dollars, the government shutdown will further delay the economic progress. The only question is, how long will the US government be trapped in this turmoil.

Citations:http://www.bbc.co.uk/news/business-24419564