On Tuesday, Oct. 1, the doors of hundreds of federal offices and parks were closed with the Senate and the House of Representatives still engaged in a battle over the federal budget. What is the main issue with the budget? The new health care reform known as Obamacare. The new health reform doesn’t sit well with House Republicans, and they are doing everything in their power to keep the government in a deadlock until an agreement favoring their agendas can be reached. Over 800,000 non-essential government employees have been told to stay at home until further notice, and over 1 million others are being asked to work without pay. The government has officially exhausted their budget, and the American economy is sure to begin to feel the effects of it after a year or so. Even with negotiations continuing to this day, the Congress cannot come to an agreement about Obamacare, with neither side wanting to change their stance or views on the issue.
Republicans originally wanted to remove all funding from Obamacare, effectively putting an end to it. The Democrats refused to kill Obamacare, seeing it as something beneficial to the American economy. Several more proposals from both sides have been made, but none have been passed. President Obama, himself, has tried to soothe the tensions in the House to no avail.
Though the economic side effects of the shutdown have yet to hit the average citizen, analysts, lawmakers and economists are bracing for the long run. If an agreement cannot be reached by Oct. 17, the date when the U.S. Treasury is scheduled to ask investors for 12 billion in loans, then it’s possible to see a hike in mortgages, auto loans, and credit card bills. This shutdown has the potential to throw America back into another recession. All of this is liable to make businesses reluctant to hire new employees, seeing as how the government is proving to be unreliable.
With the Congress unwilling to reach a conclusion on the healthcare reform and the growing tension among American businesses and citizens, a recession is on the verge of becoming a reality. If the American government cannot reach a conclusion soon, then the financial stability of America will be shaken to its core and its citizens will surely feel the effects for years to come.