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Fears oF Government Shutdown and Its Potential Impact on the Economy

  • Writer: Peyton Widen
    Peyton Widen
  • Sep 30
  • 1 min read
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President Trump and Congress have yet to come to terms on a budget or spending plan. This means if a compromise is not reached within the next couple of days, the government is set to “run out of money at midnight on Tuesday,” as stated by Time. This will lead to many job furloughs for federal workers, especially administrative staff within federal agencies, because with no money, they can’t pay all the non-essential government employees.  

 

In past government shutdowns, we have seen the biggest impact on national parks and museums, and about 800,000 government workers missed several weeks of pay. A government shutdown could also disrupt many important services, like food assistance for families and commitments the government has with vendors. A shutdown will also delay reports that show how the economy is doing. Without this info, the Federal Reserve could struggle to decide whether to raise or lower interest rates, which leads to uncertainty for consumers. It makes people nervous about spending and causes businesses to hold back certain production. 

 

Frustration grows across the country as politicians argue and fail to agree on a budget. This is especially scary for those who depend on government help, like food stamps or housing support. It is in the hands of our President and Congress to determine the fate of so many of these federal employees' jobs. Unless there is a last-minute deal made, federal funding is set to lapse, carrying a wide range of implications that will affect many of these Americans’ daily lives.


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