How will a governmental shutdown affect the American people - Research Proposal Example

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How will a governmental shutdown affect the American people

This paper tells that in 2011, the U.S. Congress passed a last-minute compromise bill authorizing the raising of the national debt limit which narrowly escaped a shutdown of the Federal government and its associated agencies. The threat of a U.S. government shutdown has major significance for the international financial markets, the employees of the Federal government, and the people who rely on it for goods, services, and payments. A U.S. government shutdown may be temporary and limited in effect, as it was in 1995 during the Clinton administration when the Congress and White House became deadlocked in a budgetary impasse. The changing economic climate of the 21st Century, following the global meltdown of the financial system in 2008, means that another occurrence of this event could lead to new and unintended consequences. The global economy is weak currently and emerging from a period of recession in the USA and Europe, largely caused by the consequences of years of wasteful government spending and debt. The U.S. national debt now stands at over $14.5 trillion, a total greater than the complete Gross Domestic Product (GDP) of the entire country and all of its annual economic activity combined. While Congress and the White House negotiated in 2011 and failed to come to concrete terms on real cuts in spending and debt reduction, the Standard & Poor’s rating agency for the first time downgraded the U.S. credit rating, citing the political impasse as a major reason. ...Show more

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This research project investigates the consequences of a U.S. government shutdown by looking at the immediate, secondary, and peripheral effects related to the stoppage of Federal government services through the division of “essential” and “non-essential” services…
Author : oklein
How will a governmental shutdown affect the American people essay example
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