US government has shutdown

The US government has declared a limited shut down after the Democrats and Republics fail to agree on next years budget before the deadline.

US government has shutdown

World Bulletin / News Desk

The White House has declared that it is shutting down for the first time in 17 years after the House of Republicans refused to accept a new budget plan proposed by the Democrats before the midnight deadline.

Despite President Barack Obama’s last minute appeal, many already felt that it was too late to avoid a shut down. The latest development is set to leave 700,000 government employees temporarily out of a job, with no guarantee that they will receive their salaries when or if they return.

US stocks also plummeted on the announcement of the much anticipated news, which is also set to cause a stir in global markets. The shutdown has already proved to be a wrench in the gradual US economic recovery.

Although the Republicans requested a bi-partisan committee to help negotiate an agreement, the Democrats refused claiming that it was already too late. This has lead the two rival parties to throw accusations against each other in what appears to be the worst political crisis in recent US history.

While the Democrats accuse the Republicans of forcing a shutdown due to their objections to the ‘Obamacare’ health plan due to ideological reasons, the Republicans have criticized the Democrats for refusing to compromise.

The Republicans have been calling for a delay in the application of the healthcare plan before a new budget could be put forward. The Democrats, on the other hand, are refusing to delay the plan which is set to revolutionize the US healthcare system and was one of the main factors behind their re-election in the latest polls.

All non-essential services will be put on hold until the US senate re-opens. However, even more problems are looming for the US if the Democrats and Republicans don’t agree the raising the debt ceiling in mid-October.

So what does the shutdown exactly mean for the US? 

Between 700,000 to 1 million public federal workers may be put on unpaid leave, which will put workers at odds with the government. Public parks, that attract around 750,000 visitors a day will also be closed, and could result in losses of $30 million. All civilian staff in the US military will be put on temporary leave, in addition to 18,000 workers from the Ministry of Justice. Civil court cases will be limited and delayed, but the US High Court will continue as normal, as will the Central Bank as it is not dependent on the congress. Federal courts will remain open for 10 days, but in the event of the continuation of the shutdown, the issue will be discussed again on 15 October. 

Güncelleme Tarihi: 01 Ekim 2013, 15:28