WHY A GOVERNMENT SHUT-DOWN WILL BE NECESSARY, NO MATTER HOW MUCH IT HURTS
One Foot in the Gravy
WHY A GOVERNMENT SHUT-DOWN WILL BE NECESSARY, NO MATTER HOW MUCH IT HURTS
One Foot in the Gravy
Covid Spending
Since Joe Biden was elected, we have passed multiple bills to address COVID and one to address infrastructure. The total has been astronomical, and it’s getting worse.
The U.S. is likely headed for a full government shutdown as Congress has so far failed to agree funding for the federal government beyond midnight on Thursday, September 30.
On Monday, Senate Republicans blocked a bill passed by the House of Representatives that would have provided funding—because it also raised the debt ceiling, which has become a focus of partisan division. An agreement to avert a shutdown could still be reached.
GOP Blocked Stopgap Bill; More Voters Would Blame Dems for Shutdown
The last shutdown was only partial but it was the longest in U.S. history, running from December 21, 2018, to January 25, 2019. As Congress has not yet passed any funding bill, this would be a full shutdown.
Nancy Pelosi’s Responsibility
The hang-up is a “human infrastructure” bill that is pending. A bipartisan compromise was reached on the $1 Trillion actual infrastructure bill. The “human infrastructure bill” expands Medicare, Medicaid and Food Stamps (SNAP), provides for an expanded Child Tax Credit that actually creates a Universal Basic Income Entitlement, provides for $700,000 fines/employee for companies that harbor employees who refuse to accept vaccination, suspends the debt ceiling through December 2022 and provides for permanent multi-trillion-dollar deficits.
The Senate parliamentarian has ruled that a single reconciliation bill can be passed this year, requiring only a majority of Senators. Unfortunately, both Joe Manchin (WV) and Kristen Sinema (AZ) have indicated they have problems with the price tag and oppose Democrats’ efforts to abolish the filibuster.
Pelosi refuses to accept victory on the $1 Trillion real infrastructure bill unless it is accompanied by the $3.5 trillion “human infrastructure” package. A single member of congress is holding hostage a trillion dollars approved for infrastructure unless she gets her way. This is insanity.
The sticking point is a $3.5 bill for what the administration calls “human infrastructure. There was bipartisan agreement on an infrastructure package to build roadways, bridges, airports, etc.
Although each shutdown is different, a nonprofit called the Committee for a Responsible Federal Budget (CRFB) has published a paper providing some insights into what might happen.
Treasury Secretary Janet Yellen warned on Tuesday that a shutdown could lead to delays in Social Security payments and a rise in interest rates on car loans, credit cards and mortgages. She also cautioned about a potential U.S. debt default.
$3,500,000,000 = Zero
In an amusing case of “you can’t make this stuff up,” President Biden, Speaker Pelosi and others have insisted that the cost of the $3.5 Trillion legislation is zero, because it is paid for completely by raising taxes on the wealthy and on corporations. A fundamental principle in honest accounting is that cost-shifting and cost-saving are not the same. Unless you’re planning to soak the rich, and are a Democrat, of course.
Here is an overview from Newsweek of how a government shutdown could affect you.
Federal Workers Furloughed
If no agreement is reached by midnight on Thursday, hundreds of thousands of non-essential federal employees will be furloughed without pay. During the 2018-19 shutdown, some 800,000 federal workers were sent home and missed two paychecks during the 35-day crisis. A similar situation this year would naturally create financial difficulties and distress for furloughed employees.
Essential Services Will Continue
Government services that are deemed essential would continue during a shutdown. These include air traffic control, law enforcement, border protection, medical care in hospitals and maintenance of the power grid.
During the last shutdown, however, airline passengers experienced delays because some air traffic controllers and Transportation Security Administration agents were working without pay.
Medicare and Social Security Checks
Medicare, Medicaid and Social Security are mandatory spending, so payments will still be made during a government shutdown. However, other services such as benefit verification and card issuing would stop, according to the CRFB. This could be a problem for some people, as benefit verification can be a requirement when applying for loans or mortgages, as well as services that require proof of income.
The Power of the Purse
The constitution establishes three separate but equal branches of government, with checks and balances. The ultimate check on the Executive Branch is exercised by Congress and is known as The Power of the Purse. All money spent must be appropriated by Congress. During1 the Trump Administration, Democrats’ control of the House of Representatives created gridlock. Speaker Nancy Pelosi is quoted saying of the Border Wall, an issue on which Trump was elected, “I’ll let him have one dollar.” That kind of hubris and personal aggrandizement can only be countered with the Power of the Purse. Except that Nancy Pelosi is in collusion with the Executive and has done everything possible to enable wasteful partisan spending and authoritarian rule.
Screams of “We’ll Default!” haven’t stopped Democrats in the past from opposing raising the debt limit when a Republican is in the White House. The only way to stop the financial and other abuse of the country by President Biden is to starve the beast. Actual default is very painful; almost as painful as allowing the abuse to continue.
so they got an extra 2 months to fool around. They must have read this substack.