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Discover how a government shutdown could impact your daily life.
1) Shutdowns Have Limited Effects
Despite the alarming headlines and “apocalyptic” warnings, only a small percentage of Americans will be directly affected by a government shutdown. Essential federal functions, including national security, border patrol, law enforcement, and disaster response, will continue to receive funding. Additionally, certain benefits like Social Security and some agencies such as the Postal Service operate independently from the annual spending process. Even in the event of a longer shutdown, back pay will usually be provided to government employees. The media often exaggerates the real-world impact of shutdowns.
2) Shutdowns Highlight Budgetary Dysfunction
A government shutdown occurs when Congress fails to pass spending bills by the end of September. The federal government’s budgetary process is flawed, with appropriations usually dragging on past the deadline. The issue of the size and scope of the federal government often divides Republicans and Democrats. Even when one party controls both Congress and the White House, completing the spending process on time is challenging. The unchecked growth of the federal government leads to negotiations over core priorities and special-interest handouts, further delaying the budget process.
3) Administrations Can Make Shutdowns Worse
Government administrations have been known to exploit shutdowns for political gain. The tactic known as “Washington Monument Syndrome” involves deliberately closing down low-cost, high-profile facilities to make the funding lapse seem more painful. In 2013, the Obama administration closed off open-air public facilities, such as the World War II Memorial, despite it being more expensive to keep them closed. While it’s uncertain how the Biden administration would handle a potential shutdown, their radical approach to issues suggests they may use similar strategies.
4) Reducing Shutdown Impact and Deficits
One solution to minimizing the impact of shutdowns and reducing budget deficits is to devolve certain federal responsibilities to state and local governments, civil society, and private entities. Activities like air traffic control and infrastructure programs could be managed more efficiently at lower levels of government or through private sector involvement. This would make the country less vulnerable to congressional dysfunction. Additionally, removing these responsibilities from the federal government would likely result in cost savings, helping to alleviate the national debt caused by wasteful spending.
House Republicans have proposed spending bills and a budget resolution that could move toward these goals. There is ongoing debate within the GOP caucus on how to strengthen these measures after a period of excessive spending that has increased the risk of bankruptcy and hyper-inflation.
For more insights on government shutdowns and budgetary issues, read more from David Ditch.
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