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Essay On Government Shutdown

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How does government shutdown affect the U.S. economy? Government shutdown occurs when the Congress fail to pass legislation funding the government operations and agencies. During the normal budget process, the Congress appropriate funds by September 30 for the following fiscal year. When this fail, the government activities or operations cease and federal employees are divided into essential and non-essential groups. But in 1995, the division were changed to excepted and non-excepted. Historically, the government has official shut downs 18 times since 1976, which it first took effect when Congress passes budget and spending bills. The first six shut downs didn’t affect the government at all. Non-essential workers were put into furloughs, which means federal employees are off work until shut down is over and they do not receive paychecks while in furlough. …show more content…

However, the non-essential workers received retroactive payments during shut down while essential workers’ pay were withheld but had to work during furlough. In the same year, many government activities were cut off. Below were the effects of shut downs and furloughs: • Tax refunds totaling almost $4 billion were delayed. • The Women, Infants, and Children nutrition program went unfunded. • Federal research activities at the National Institutes of Health (which lost about three-quarters of its employees), the National Science Foundation (which lost 98 percent of its workforce), and the Centers for Disease Control and Prevention (which lost two-thirds) shut down nearly entirely; the CDC scaled back its monitoring of disease outbreaks. • Environmental Protection Agency inspections halted at 1,200 locations. • The Food and Drug Administration delayed approval of drugs and medical devices. • The national parks shut down, resulting in $500 million in lost consumer spending from

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