As Congress continues to play chicken with itself, the clock is ticking on a looming shutdown of government services. In simple terms, the inability of Congress to pass a budget will force the federal government to curtail "non-essential" services until such time that a budget is passed or an alternative emergency funding measure can be put into place.
Many people are worried about what this shutdown could mean, and it's no wonder as the media has been full of ominous stories about far-reaching impacts. Remember, though, this is not an unprecedented event and there have been more than 15 such occurrences in the past 35 years. Most shutdowns last a little more than a week, though they have stretched as long as three weeks (the famous, or infamous, shutdown that occurred during Bill Clinton's presidency). (For more on how the government spends, check out What Is Fiscal Policy? And Do Tax Cuts Stimulate The Economy?)
While a shutdown, should it occur, will certainly be inconvenient, it will not crush the economic recovery nor will it do lasting damage.
Delays in Abundance
When the shutdown goes into effect, non-essential government workers will be told to stay home. Every department and provider of government services has its own policies about what constitutes "essential", but it is safe to bet on some significant delays especially in any processing of applications.
To read the full column, please click below:
http://financialedge.investopedia.com/financial-edge/0411/Why-You-Dont-Want-A-Government-Shutdown.aspx
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