On Oct 1st, the American government announced the intention to shut down. The shutdown of the American government is result of no budget deal reached in Congress. In Congress, the House Republicans did not allow the new budget plan to pass except for the Democrats who agreed to delay the Affordable Care Act. The shutdown of government will continue if the impasse isn’t solved.
The direct effects of the government shutdown are closures of national parks and some agencies and the furlough of over 800,000 federal workers. The closure of national parks leads to dissatisfaction among tourists. However, social security is still running. Therefore, in general, the impact on the common American’s life will not be that serious.
According to past data, the shutdown of government in 1996 generated a 14 billion dollar economic loss for America. If this impasse continues until Oct 17, America will reach the upper limit of the debt ceiling, and it will have a serious impact for the American economy.
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