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Government on the Brink of Shutdown
On October 1, 2023, if Congress doesn’t reach an agreement, the government will shut down. This would be the country’s 22nd government shutdown in five decades. Government shutdowns have become an unfortunate recurring event in American politics. Since 1995, there have been five government shutdowns, all of which have had negative consequences for the American people.
The impact of government shutdowns extends beyond immediate inconveniences. They can have long-term economic consequences, affecting businesses, workers, and families across the country. The uncertainty surrounding government operations can lead to decreased consumer confidence and investment, which can hinder economic growth.
The 2018 government shutdown delayed over $2 billion in federal loans to small businesses as the Small Business Administration was unable to make new loans. Delays such as these disrupt not only the day-to-day operations of small businesses, but they put budgets in limbo, resulting in business owners putting off necessary purchases or hiring additional staff. The impacts of government shutdowns are especially damaging for small businesses because they don’t have the same resources as large companies to absorb even short-term losses. Most small businesses operate on tight, carefully planned budgets and even minor disruptions can threaten stability.
It is important to note that government shutdowns are not inevitable; they are a result of political choices. The failure to reach a compromise on federal spending reflects the deep ideological divisions within Congress and the broader political landscape.
We are hopeful that our elected officials will seek resolution to this issue and work in a bipartisan manner to avoid a shutdown while also addressing the fiscal health of the United States.
Meet The Author:
As Vice President for Government Relations and Public Affairs, I work to explain how actions on Capitol Hill can impact the self-employed. I love D.C. and have made my home in Capitol Hill, where I live with my husband and black Labrador, Coltrane. We love playing volleyball and softball on the National Mall.
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