Disastrous countdown begins for Government shutdown until Oct. 17th Deadline (due to attempts to defund the Affordable Care Act)
The LA times reports that ‘No one knows for sure what might happen next. But there’s broad agreement among experts that a first-ever U.S. government default — at risk if the $16.7-trillion debt limit isn’t raised — could trigger a major financial crisis. Treasury Department officials warned this week that it could be worse than the 2008 financial crisis and the Great Recession, labeling the prospect potentially “catastrophic.”‘
This is a bigger deal than I had anticipated, and every day the situation gets worse. All of the sudden the affordable care act isn’t just about health care needs, but our fate of our economy could be resting on the decisions being made in our federal government based on this law. I sure hope they come to a resolution soon because the last thing our country needs right now is another time of economic troubles.
The other option is to raise our country’s debt ceiling, which is bad, but not as bad as the economy going down hill. Based on this I would support raising the debt ceiling rather than risk the economy with problems. Then again, the easiest thing to do would be for the house and senate to come to an agreement, but that looks like it is too much to ask as of right now.
On a positive side note one can shop the ACA exchanges this week despite all the controversy. Although, many people have had problems with the system crashing, finding cheaper insurance, and other unexpected errors that will hopefully be taken care of quickly.
The Priviate sector suffers due to Government shutdown because efforts to defund the Affordable Care Act
It is not only the 800,000 federal employees, state parks, americans who participate in WIC, and other governmental programs who have been suffering due to the ‘partial’ shutdown of the United States Government since Tuesday.
Layoffs are Beginning
Many companies that do business with government are starting to suffer badly from the government shut down and will have to furlough its employees if the situation doesn’t change.
For example, Latimes reports ‘Defense giant Lockheed Martin Corp. announced it would furlough about 3,000 employees starting Monday, attributing the move directly to the political standoff that has shut down much of the government, including the facilities where Lockheed employees work.’ They also mention that if the shut down continues that more employees would continue to be furloughed weekly.
Another company in Connecticut, Sikorsky Aircraft Corp, notified 2,000 of its employees that they would face temporary layoffs, if the shutdown is not resolved by Monday. Other smaller companies are getting closer to similar measures.