The Federal Shutdown : Impacts Domestic Economy Badly

The second shutdown in the history of America is really a war between the political parties which is affecting the Nation as a whole and thereby the economy. As many workers are asked to leave their desks indefinitely and without pay, there is a serious crisis coming into the American economy and if this goes long term it will have a global effect as well.

Photo: nbcwashington.com

ADVERTISEMENT

The differences in ideology is the one blamed for the current shutdown in United States. Barrack Obama in a recent press meet said "This Republican shutdown did not have to happen -- I want every American to understand why it did happen," Obama said.

"They have shut down the government over an ideological crusade to deny affordable health care to millions of Americans."

The issue started when the Republicans opposed the funding of Obamacare, thelandmark health care law that President was to announce. The fight is supposed to be over the large funding that may be required if the Obamacare health plans roll out. In response to this argument, the Republican House Speaker John Boehner, meanwhile claimed Obama was pursuing a "scorched earth" policy by refusing to negotiate, as the rhetoric hit new heights and hopes for a swift end to the standoff faded.

ADVERTISEMENT

"Washington Democrats have slammed the door on reopening the government by refusing to engage in bipartisan talks," Boehner wrote in an opinion piece in USA Today.

Many of the federal institutions and monuments are currently shutdown following this event, including the monumental statue of liberty. The staff appointed directly by the government are forced to leave their jobs and stay on leave until the crisis gets over.

ADVERTISEMENT

"We know that the last time Republicans shut down the government in 1996, it hurt our economy. And unlike 1996, our economy is still recovering from the worst recession in generations," the president said.

Although the current crisis is not supposed to have a global impact as recession as this is considered more as a domestic crisis. However the stocks of American shares have shown a slight downside. As for IT contractors, this shouldn't be a cause of worry as well, the recent events will not be directly affecting the software industry.

Shared From Times Of India

Unknown

- Unknown Updated at: Wednesday, October 02, 2013