What a Government Shutdown Could Mean

by admin on April 6, 2011

The impact of a federal government shutdown is highly dependent on what President Barack Obama’s administration determines is “essential” and “non-essential”.

For instance, the White House has made it clear that any personnel and services  “necessary for the safety of life and protection of property” of the country and its citizens will continue.

There are a number of other possibilities, though. Here are a few examples:

  • Social Security: Checks could go out to beneficiaries, but anyone who is a new applicant for benefits may face delays (100,000 delays occurred during 1995 shutdown)
  • IRS: Processing of tax refunds for paper-filed returns (approximately 30 percent of total) would be suspended and other tax assistance programs may not be available (problematic with the filing deadline so soon)
  • Construction permits: Developers and construction crews that need permits from the Army Corps of Engineers or the EPA would likely be delayed in getting to work, as the permitting process could be halted
  • National museums and national parks would be close.

It is expected that federal courts, VA facilities and the U.S. Postal Service are likely to  be open if a shutdown occurs.

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Harold Trainer April 7, 2011 at 12:00 pm

Obama’s compromise, or some say capitulation, on extending the Bush tax cuts plus adding more cuts, will increase the national debt by over a trillion dollars when the wars are added. Our government will have to borrow the money to pay for the cuts and continuation of the wars.

This will increase inflation, interest rates and the costs of everyday living for the middle and lower class working Americans. It will adversely affect job creation and the standard of living for Americans.

The next step will be to cut spending and the Republicans and Democrats in Congress will focus on earned entitlements such as social security, medicaid, medicare and military health benefits. Obama has already said he favors a 1.4% pay increase for the military. This is the lowest pay raise in almost 50 years and is a strange thanks for those who have been fighting our wars for ten years. This really adds up to a tax increase for the middle class and our most needy.

All of this while big business and the most wealthy receive huge tax cuts ostensibly to stimulate the economy and earn more for investors. Job creation will be very uncertain.

This is another victory for the Republicans and Democrats who are willing to borrow from the future of the elderly, our kids and grandkids to continue the unnecessary wars and support the most wealthy Americans.

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