40 Lakh American Workers to Freeze Payment During Shutdown Crisis

The biggest economic shutdown in the world is set to begin in the United States at midnight tonight. Due to this, all government work except emergency services will come to a halt. The U.S. government and all its agencies will cease operations. This will mark the fourth time a shutdown has occurred in the United States. However, it’s not just the United States; the impact is likely to resonate globally. In today’s global age, if government work in the United States comes to a standstill, it can have negative repercussions. In this situation, the effects of this U.S. shutdown will be felt not only in the U.S. but also on world markets. It is possible that the global stock markets will react sharply to this U.S. shutdown, causing turmoil.

What is the U.S. Shutdown?

The U.S. fiscal year ends on September 30th. If the government and the opposition cannot agree on funding, a shutdown is triggered. This means that all non-essential government functions are suspended, including the payment of all bills. With the shutdown in effect, approximately 4 million federal government employees, including those from agencies like NASA, will see their paychecks delayed. National parks will be closed as well. Only emergency services will continue to operate, funded by the government outside of regular appropriations. The private sector is generally unaffected by the shutdown.

How Did the Crisis Emerge?

The United States is currently grappling with a hefty $2 trillion budget deficit, which is more than the $1 trillion deficit of the previous year. Government revenue has remained the same, while expenses have increased. This has led to the current situation. The United States has now surpassed a total debt of $33 trillion. In just one quarter, there has been an increase of $1 trillion in this debt. As a result, there are difficulties in raising the debt ceiling.