US government shutdown on Sunday

[trophy33]

The U.S. government will shut down at 12:01 a.m. Sunday, Oct. 1 if lawmakers don't pass a continuing resolution or a federal budget by Sept. 30.

The shutdown would be the fourth in a decade.

The US debt to GDP ratio is similar to WWII and is about 120% of GDP.

US government shutdown: What to expect

Time is running out. If Congress does not reach an agreement before midnight on Saturday, the US government will shut down.

www.euronews.com

Government shutdown updates: Will national parks close? When was the last shutdown?

Hard-right Republicans who represent a sliver of the U.S. are set to send the entire country into a federal government shutdown at 12:01 a.m. Oct. 1.

www.usatoday.com

 

[trophy33]

This comes into a situation when 61% of Americans live paycheck to paycheck:

61% of Americans say they are living paycheck to paycheck even as inflation cools

Many Americans still feel financially strained despite recent signs inflation is cooling.

www.cnbc.com

So a delayed income may push more of them into insolvency, more credit card debt etc.

 

[FireDragon76]

This comes into a situation when 61% of Americans live paycheck to paycheck:

61% of Americans say they are living paycheck to paycheck even as inflation cools

Many Americans still feel financially strained despite recent signs inflation is cooling.

www.cnbc.com

So a delayed income may push more of them into insolvency.

There is zero chance of the "Freedom Caucas" getting anything they want, even if House Democrats made concessions to their draconian budget proposals, because the Senate and President would just veto it.

Some insiders say this is really about a power struggle between Matt Gaetz and Kevin McCarthy. And McCarthy basically is refusing to do the right thing and step down as Speaker, in the name of defusing this Russian Roulette scenario. Self-aggrandisement over country, which is typical now days for this political party.

 

[trophy33]

There is zero chance of the "Freedom Caucas" getting anything they want, even if House Democrats made concessions to their draconian budget proposals, because the Senate and President would just veto it.

Some insiders say this is really about a power struggle between Matt Gaetz and Kevin McCarthy. And McCarthy basically is refusing to do the right thing and step down as Speaker, in the name of defusing this Russian Roulette scenario. Self-aggrandisement over country, which is typical now days for this political party.

I do not know the political details, but the US debt is growing at a shocking rate. 120% of GDP is the ratio after which it lead to some kind of a crisis or collapse, in the history of the world.

 

[FireDragon76]

I do not know the political details, but the US debt is growing at a shocking rate. 120% of GDP is the ratio after which it lead to some kind of a crisis or collapse, in the history of the world.

Due to the way the US monetary system operates (fiat currency, alot of debt being held by stakeholders in the global economy), it's not necessarily as dire as it looks.

 

[trophy33]

Due to the way the US monetary system operates (fiat currency, alot of debt being held by stakeholders in the global economy), it's not necessarily as dire as it looks.

In the last 10 years, the US debt doubled. Its not sustainable for any country. In just last 3 years it grew by 50%.

The growth of debt to GDP is a problematic part:

 

[SimplyMe]

There is zero chance of the "Freedom Caucas" getting anything they want, even if House Democrats made concessions to their draconian budget proposals, because the Senate and President would just veto it.

Some insiders say this is really about a power struggle between Matt Gaetz and Kevin McCarthy. And McCarthy basically is refusing to do the right thing and step down as Speaker, in the name of defusing this Russian Roulette scenario. Self-aggrandisement over country, which is typical now days for this political party.

The issue is that McCarthy stepping down as Speaker is unlikely to help. In this case, the issue is that the Freedom Caucus is going to want a Speaker that likely will not get enough votes to become Speaker. Instead, we'd go through likely another drawn out process for Republicans to finally agree on a Speaker, and only then could they get back to trying to fund the government. Worse, as you point out, the Freedom Caucus is not going to approve a Speaker that will allow a budget that would get approved by the Senate and the President. It is a major issue.

OTOH, I believe it does come down to McCarthy -- both his refusal to do the "right thing" in bringing the Senate bill to a vote in the House -- which is likely to pass and fund the government; much less the "right thing" in honoring the deal he made with Biden only about 6 months ago where they agreed on funding and budget, to get us through to the next election, when they raised the debt ceiling.

 

[NxNW]

This comes into a situation when 61% of Americans live paycheck to paycheck:

61% of Americans say they are living paycheck to paycheck even as inflation cools

Many Americans still feel financially strained despite recent signs inflation is cooling.

www.cnbc.com

I guess they need to lift themselves up by their bootstraps and save some money for emergencies.

 

[trophy33]

I guess they need to lift themselves up by their bootstraps and save some money for emergencies.

I believe that the culture in the USA is to use a credit card for this purpose.

 

[Fantine]

In the last 10 years, the US debt doubled. Its not sustainable for any country. In just last 3 years it grew by 50%.

The growth of debt to GDP is a problematic part:

Thanks, Republicans who passed irresponsible tax cuts for the rich and corporations. Not.

Don't hold your breath waiting for the trickle down. Instead, soldiers and air traffic controllers will be forced to work withoutbpay while their families suffer.

 

[Diamond72]

The U.S. government will shut down at 12:01 a.m. Sunday, Oct. 1

GOOD, that maybe the best thing that ever happened to this country. The less Gov we have the better off we are.

 

[Wings like Eagles]

Biden is making sure a lot of the money (we don't have) will still be funneled into Ukraine, shut down or no shut down.

 

[trophy33]

Biden is making sure a lot of the money (we don't have) will still be funneled into Ukraine, shut down or no shut down.

Some interesting numbers:

So far, Congress has approved about $113 billion in aid to Ukraine.
The Pentagon budget is authorized to be $886 billion next year.
The Treasury Department paid a record $213 billion in interest payments on the national debt in the last quarter of 2022, up $63 billion from the same period a year earlier.

https://www.cnn.com/2023/09/21/politics/war-funding-ukraine-what-matters/index.html

https://www.cnn.com/2023/02/14/politics/interest-payments-federal-debt/index.html

 

[Mayzoo]

GOOD, that maybe the best thing that ever happened to this country. The less Gov we have the better off we are.

So, how long are you willing/able to work without pay like the essential workers and military will be doing? They will get back pay but that takes a lot of time and does not help in the here and now.

The non-essential workers are just furloughed without pay as I seem to recall from our last 35 day shut down.

ETA: they made a law in 2019 to ensure even the furloughed get paid eventually after a shutdown.

 

[jacks]

So, how long are you willing/able to work without pay like the essential workers and military will be doing? They will get back pay but that takes a lot of time and does not help in the here and now.

The non-essential workers are just furloughed without pay as I seem to recall from our last 35 day shut down.

ETA: they made a law in 2019 to ensure even the furloughed get paid eventually after a shutdown.

Actually "essential workers" continue to work and get paid. Non-essential workers don't have to work and will still get paid, when the shutdown is over. HERE Though I don't believe the military are considered essential workers. HERE So if the shutdown lasted more than a month they would have to wait for their back pay.

 

[PsaltiChrysostom]

I live in a region with 15 military bases and 82,000 active duty personnel and 200,000+ retired military. Yeah, Hampton Roads is going to be a ^*&*show because people wont be able to pay rent & utilities, buy groceries. One friend is due to be assigned to Florida and he's anticipating that he is going to put $8,000 a month on credit cards. Yeah, he'll get back pay and reimbursed but it will cause a lot of damage.

 

[Diamond72]

So, how long are you willing/able to work without pay like the essential workers and military will be doing?

I never really got paid. I use to charge $12 an hour for what they charge $100 and hour now. They talk about the butcher, the baker and the candle stick maker. We all work together to provide for each others needs.

 

[SimplyMe]

Actually "essential workers" continue to work and get paid. Non-essential workers don't have to work and will still get paid, when the shutdown is over. HERE Though I don't believe the military are considered essential workers. HERE So if the shutdown lasted more than a month they would have to wait for their back pay.

The military are essential workers but they won't be paid, the same way traffic controllers won't get paid; but they all still have to show up for work everyday. If you are for smaller deficits you should be against the government shutting down as the shutdown will end up costing billions of dollars more than funding the government would.

 

[Fantine]

335 Congressmen and slightly more than half of House Republicans just did the patriotic--and correct-- thing and voted to extend normal business for 45 days.

Common-sense and good character won for a change.

 

[Diamond72]

I live in a region with 15 military bases and 82,000 active duty personnel and 200,000+ retired military.

So what do they do other than twiddle their thumbs and pick their nose?
What do war mongers do when the are not out seeking death, carnage & mass destruction?