How the Government Shutdown affects on lenders
All Credit lenders | 07 Oct 2013

Here we are in the midst of a government shut down. This shut down apparently, according to the news and other media sources, could have been avoided and has been a by product of the Republicans and Democrats not agreeing to the new medical care act.

The Republicans are proposing a one year hold to the start of the “Affordable Care Act”. This medical act, according to the media, will bring health care to the 15% of the US population that currently doesn’t have health care. The Republicans are stating that they will not sort out budgeting issues unless there is a dismantling or defunding of the “Affordable Care Act”.

So the rest of the world, and the people of the United States, wait for congress to get their heads together to sort this out, as there are more serious problems needing to be resolved, like our budget crisis for example.

Meanwhile the government gave 800,000 employees half a day to prepare for this government shutdown, wrap up their affairs, send out emails, change website homepages, and other necessary things to inform the public of the shutdown of non-essential services during the US Government shutdown. I don’t think anyone realized the extent of the shutdown and what exactly would be the outcome of this.

Since the government shutdown, the government has closed up a lot of programs that we all use indirectly every day. For example; 401 National Parks closed for the shutdown, i.e.: Yellowstone National Park and the Grand Canyon, just to name a few.

With October being a very busy time for the Grand Canyon, the park traditionally boasts around 18,000 visitors per day throughout this busy month. Financial analysts have stated that the parks alone will cost the government $1.6 Billion per week, not to mention that many of the towns that surround these parks exist only because of tourism.

The US government, closing National Parks, during this shutdown is only just the start of the various functions and programs that have been closed during this shutdown. US Intelligence has laid off 70% of its staff, lights have been turned off in government buildings that were closed, even Michelle Obamas has posted a message to her twitter account stating that her account would have limited posting, our Military Academies have suspended their athletics programs, and the list goes on. In addition to these programs, several government agencies have had to close their doors or to reduce their number of employees down to essential staff only. It is reported that the following agencies have had to make reductions because of the shutdown, the EPA, CDC, FDA, EEOC, and even the WIC program.

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This is not the first time our country has experienced a shutdown, in 1995/96 our country had another Government shutdown, and this one lasted for 28 days. The original dates were from Dec 16th, 1995 to Jan 6th, 1996 and of course medical care spending was one of the issues as to why our government had to shut down. So it seems this is not the first time that our government shutdowns have been negative repercussions of political disagreements. Before the government shutdown of 1995, Newt Gingrich refused to raise the spending limit for our government, which caused a shutdown that was used to avoid letting our country go into default.

This shutdown is going to affect everyone, but how much or how little will be determined by what programs and agencies you need to survive every day. Hopefully our country’s government will get back into alignment, review both sides of this argument, and come up with a strategy on how to balance both sides of this “Affordable Care Act”.

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