The suspension of work (Shatdown) began a few hours after the Senate rejected the short -term measure of expenses, which would allow the government to continue its activities until November 21. Democrats opposed the bill due to the refusal of the Republicans to extend the effect of medical insurance for millions of Americans, the duration of which expires at the end of the year. Republicans believe that this issue should be considered separately.
Independent analysts warn that the delay can last longer than the previous closures related to the budget, since the US President Trump and White House officials threaten to punish the democrats with reducing state programs and the federal wage fund.
The budgetary department of the White House gave the departments to begin to fulfill its plans in case of termination of financing, closing the government with the exception of the performance of the necessary duties. This decision will violate the work of hundreds of thousands of Americans and will undermine many public services, writes Bloomberg. Trump suggested that his administration will use this closure to conduct mass dismissals of federal employees.
Due to the suspension of the government’s work, the publication of key economic data, such as the report of the employment statistics office, will also be delayed. The Federal Reserve Carefully monitors economic data, taking into account changes in interest rates, and will work without critical data during the suspension of the government.
The agency also calculated that if the suspension lasts three weeks, the unemployment rate can jump up to 4.6–4.7% from 4.3% in August, since workers who are on unpaid leave are considered temporarily unemployed.
Context
This is the first stop of the work of the US government for almost seven years and the third under President Trump, it is also the 15th termination of the government since 1981, writes Reuters. The longest suspension of the government in the history of the United States lasted more than 35 days from December 2018 to January 2019 during the first term of Trump due to a dispute about the security of the borders.
