With disagreements continuing on the debt ceiling, Congress has yet to finalize the funding legislation. If everything stays the same as it is we will have a government shutdown. This will surely affect how federal agencies operate despite the pandemic. The results of a government shutdown may be obvious at first, but we’ve never had the government failing to fund itself while there is a pandemic.
Update: Congress voted to keep the government open, The government shutdown 2022 averted and every federal agency will remain open.
The economics also point out the upsides to the government shutdown where the negative effects of inflation may be reduced to a mere zero. Although whether a government shutdown is a good thing or not, for the time being, it’s for sure that it’s not something that most people prefer; economically.
Why is the government shutting down?
Every year, before October 1st, the federal government needs to pass the funding legislation that decides how much each agency receives. The fiscal year the United States federal government uses starts from October 1 and runs through the last day of September, the following year. If the funding legislation doesn’t pass through, the government fails to fund itself, thus, resulting in a shutdown.
The most notable government shutdown happened not so long ago, in December of 2019, and lasted for more than a month where most federal workers were furloughed. As getting furloughed from your job isn’t helpful, both the Democrats and Republicans are going to try to keep as short as possible or even prevent it from happening.
How long does the government shutdown last?
There is no specific start and end date to a government shutdown. As soon as the government shuts down, it can last for days, weeks, or even months. Although there was never a case where the government shutdowns longer than one month, it can happen.
The longest government shutdown in the US went on for a little more than a month. It’s more than likely that the possible upcoming events won’t last as long but might take a little longer than expected as both parties are persistent on their opinions about the debt ceiling.