The Government Shutdown Abstract:This article focuses on the United States federal government shutdown of 2013.It includes the introduction about the government shutdown,the specific process of the 2013 government shutdown together with the background of this time shutdown such as the Obamacare,the debate between the House and the Senate.Then it analyses the surface of the reasons and the root cause resulting in the inevitable shutdown.Finally,it mentions some effects of the government shutdown on federal government operations,businesses,the natives,etc. Key words:government shutdown Obamacare House Senate federal 1.Introduction about the government shutdown The United States Constitution requires government spending be approved in bills passed by the United States Congress.The legislation that sets government spending is called appropriations legislation.Since the 1990s,Congress has often failed to pass the twelve to thirteen appropriation bills that set government-wide spending when the two chambers of Congress failed to agree to an appropriations continuing resolution.If the Congress fails to pass budget negotiations by the end of the fiscal yearl ,there will be a "funding gap".Before the October 2013 shutdown,seventeen federal government shutdowns have taken place,most of which were partial or for single days or weekends and involved few if any furloughs. Some government functions such as the Federal Reserve System are completely self-funded.Others,like Social Security and Medicare are partially self-funded but may be subject to administrative shutdowns and failures if the government fails to meet its financial obligations.Some programs are fully or partially funded for multiple years and some are funded every year.2 The laws and regulations governing shutdowns separate federal workers into “essential”and“non-essential.”If a shutdown hits,the essential workers still work,without pay,while the non-essential workers have to go home after after a half-day of preparing 1 Fiscal year:A fiscal year(or financial year,or sometimes budget year)is a period used for calculating annual("yearly")financial statements in businesses and other organizations.The united States federal government's fiscal year is the 12-month period beginning on 1st October and ending on 30th September of the next calender year. 2 From Wikipedia http://en.wikipedia.org/wiki/United States federal government shutdown of 2013
The Government Shutdown Abstract:This article focuses on the United States federal government shutdown of 2013.It includes the introduction about the government shutdown, the specific process of the 2013 government shutdown together with the background of this time shutdown such as the Obamacare, the debate between the House and the Senate.Then it analyses the surface of the reasons and the root cause resulting in the inevitable shutdown.Finally,it mentions some effects of the government shutdown on federal government operations,businesses,the natives,etc. Key words: government shutdown Obamacare House Senate federal 1. Introduction about the government shutdown The United States Constitution requires government spending be approved in bills passed by the United States Congress.The legislation that sets government spending is called appropriations legislation.Since the 1990s,Congress has often failed to pass the twelve to thirteen appropriation bills that set government-wide spending when the two chambers of Congress failed to agree to an appropriations continuing resolution.If the Congress fails to pass budget negotiations by the end of the fiscal year 1 ,there will be a “funding gap”.Before the October 2013 shutdown,seventeen federal government shutdowns have taken place,most of which were partial or for single days or weekends and involved few if any furloughs. Some government functions such as the Federal Reserve System are completely self-funded.Others,like Social Security and Medicare are partially self-funded but may be subject to administrative shutdowns and failures if the government fails to meet its financial obligations.Some programs are fully or partially funded for multiple years and some are funded every year.2 The laws and regulations governing shutdowns separate federal workers into “essential” and “non-essential.” If a shutdown hits,the essential workers still work,without pay,while the non-essential workers have to go home after after a half-day of preparing. 1 Fiscal year:A fiscal year(or financial year,or sometimes budget year)is a period used for calculating annual(“yearly”) financial statements in businesses and other organizations.The united States federal government’s fiscal year is the 12-month period beginning on 1 st October and ending on 30 th September of the next calender year. 2 From Wikipedia http://en.wikipedia.org/wiki/United_States_federal_government_shutdown_of_2013
2.Background of the 2013 shutdown in the U.S 2.1 The Obamacare The patient Protection and Affordable Care Act(PPACA),commonly called the Affordable Care Act(ACA)or "Obamacare",is a United States federal statute signed into law by President Barack Obama on March 23,2010.The ACA was aimed at increasing the quality and affordability of health insurance by expanding public and private insurance coverage,and reducing the costs of healthcare for individuals and the government.It also requires insurance companies to cover all applicants within new minimum standards and offer the same rates regardless of pre-existing conditions or sex3 2.2 The debate of the Healthcare debate The Senate began work on its own proposals while the House was still working on the Affordable Health Care for America Act.As the United States Constitution requires all revenue-relates bills to originate in the House,the Senate took up this bill since it was first passed by the House as a modification to the Internal Revenue Code.4 The Republican minority in the Senate vow to filibuster any bill that they did not support and it requires a cloture vote to end debate,in which 60 votes would be necessary to get passage in the Senate.While the election of Scott Brown meant Democrats could no longer break a filibuster in the senate.Given that the Democrats have lost the supermajority in the senate but have already passed the bill,it is reasonable for the House to abandon its own bill,and pass the Senate's bill.However,the House Democrats had expected to be able to negotiate changes in a House-Senate conference before passing a final bill.(Any bill emerged from conference that differed from the Senate bill would have to be passed in the Senate over another Republican filibuster).They drafted the Health Care and Education Reconciliation Act,which could be passed by the reconciliation process.3 The House passed the Senate bill with a 219-212 vote on March 21,2010,with 34 Democrats and all 178 Republicans voting against it.Obama signed the ACA into 3"ObamaCare Survives the Supreme Court:5 Takeaways",The week,June 28.2012.Retrieved June 30.2012. 4 The domestic portion of federal statutory tax law in the U.S,published in various volumes of the United States Statutes at Large. 5 A legislation process of the United States Senate intended to allow consideration of a budget bill with debate limited to twenty hours under Senate rules
2. Background of the 2013 shutdown in the U.S 2.1 The Obamacare The patient Protection and Affordable Care Act(PPACA),commonly called the Affordable Care Act(ACA) or “Obamacare”,is a United States federal statute signed into law by President Barack Obama on March 23,2010.The ACA was aimed at increasing the quality and affordability of health insurance by expanding public and private insurance coverage,and reducing the costs of healthcare for individuals and the government.It also requires insurance companies to cover all applicants within new minimum standards and offer the same rates regardless of pre-existing conditions or sex 3 2.2 The debate of the Healthcare debate The Senate began work on its own proposals while the House was still working on the Affordable Health Care for America Act.As the United States Constitution requires all revenue-relates bills to originate in the House,the Senate took up this bill since it was first passed by the House as a modification to the Internal Revenue Code.4 The Republican minority in the Senate vow to filibuster any bill that they did not support and it requires a cloture vote to end debate,in which 60 votes would be necessary to get passage in the Senate.While the election of Scott Brown meant Democrats could no longer break a filibuster in the senate.Given that the Democrats have lost the supermajority in the senate but have already passed the bill,it is reasonable for the House to abandon its own bill,and pass the Senate’s bill.However,the House Democrats had expected to be able to negotiate changes in a House-Senate conference before passing a final bill.(Any bill emerged from conference that differed from the Senate bill would have to be passed in the Senate over another Republican filibuster).They drafted the Health Care and Education Reconciliation Act,which could be passed by the reconciliation process.5 The House passed the Senate bill with a 219-212 vote on March 21,2010,with 34 Democrats and all 178 Republicans voting against it.Obama signed the ACA into 3 “ObamaCare Survives the Supreme Court:5 Takeaways” , The week , June 28,2012.Retrieved June 30,2012. 4 The domestic portion of federal statutory tax law in the U.S, published in various volumes of the United States Statutes at Large. 5 A legislation process of the United States Senate intended to allow consideration of a budget bill with debate limited to twenty hours under Senate rules
law on March 23,2010.The Health Care and Education Reconciliation Act,was also passed by the House on March 21,by the Senate via reconciliation on March 25,and was signed by President Obama on March 30 3.The process of the 2013 government shutdown Timeline of events September 20,2013--House passes appropriations bill H.J.Res 59,a continuing resolution that would fund the government until December 15,2013.The bill included a controversial amendment that would defund the ACA September 27,2013--Senate amends H.J.Res.59,removing the House amendment that would defund the ACA.This is commonly referred to as a clean continuing resolution. September 29,2013--House amends H.J.Res.59 a second time add another amendment to defund the ACA.President Obama threatens veto. September 30,2013--Senate amends H.J.Res.59 again to remove the defunding amendment and return to a clean continuing resolution.House Speaker refuses to bring amended bills to veto.House passed H.Res.368 so only the Majority leader or his designee can bring H.J.Res.59 to a veto. October 1,2013--Government shuts down. October 2,2013--Obama meets with Republican and Democratic leaders,but no agreement is reached.House begins passing "mini"appropriations bills.Senate Majority Leader refuses to bring"mini"bills to vote. October 9,2013--President Obama invites the entire Congress to meet with him about the government shutdown and upcoming debt ceiling.Separate meetings for House Democrats,House Republicans,Senate Democrats,and Senate Republicans were suggested.The House leadership responded that they would send 18 members to meet with Obama.6 October 16,2013--Congress plans last-minute votes to avert default.The plan would allow the U.S to continue borrowing until February 7.House of Representatives Speaker John Boehner said he would allow the deeply divided House to vote on the Senate plan to move the debt limit and a government reopening.The senate pass the 6 Goldfarb Zachary"As financial markets show signs of worry,White House plans meetings with lawmakers"The Washington Post October 9,2013,Retrieved October 9,2013
law on March 23,2010.The Health Care and Education Reconciliation Act,was also passed by the House on March 21,by the Senate via reconciliation on March 25,and was signed by President Obama on March 30. 3. The process of the 2013 government shutdown Timeline of events September 20, 2013--House passes appropriations bill H.J.Res 59,a continuing resolution that would fund the government until December 15,2013.The bill included a controversial amendment that would defund the ACA. September 27, 2013--Senate amends H.J.Res.59,removing the House amendment that would defund the ACA.This is commonly referred to as a clean continuing resolution. September 29, 2013--House amends H.J.Res.59 a second time add another amendment to defund the ACA.President Obama threatens veto. September 30, 2013--Senate amends H.J.Res.59 again to remove the defunding amendment and return to a clean continuing resolution.House Speaker refuses to bring amended bills to veto.House passed H.Res.368 so only the Majority leader or his designee can bring H.J.Res.59 to a veto. October 1, 2013--Government shuts down. October 2, 2013--Obama meets with Republican and Democratic leaders,but no agreement is reached.House begins passing “mini” appropriations bills.Senate Majority Leader refuses to bring “mini” bills to vote. October 9, 2013--President Obama invites the entire Congress to meet with him about the government shutdown and upcoming debt ceiling.Separate meetings for House Democrats,House Republicans,Senate Democrats,and Senate Republicans were suggested.The House leadership responded that they would send 18 members to meet with Obama.6 October 16, 2013--Congress plans last-minute votes to avert default.The plan would allow the U.S to continue borrowing until February 7.House of Representatives Speaker John Boehner said he would allow the deeply divided House to vote on the Senate plan to move the debt limit and a government reopening.The senate pass the 6 Goldfarb,Zachary “As financial markets show signs of worry,White House plans meetings with lawmakers” The Washington Post October 9, 2013, Retrieved October 9, 2013
bill by a vote of 81 to 18.It passed in the House a few hours later,285 for and 144 against .President Obama signed the bill into law at 12:30am on October 17,effectively ending the shutdown and debt ceiling crisis.? 4.The root cause for the shutdown 4.1 Republican's 2010 congressional victory The tensions began to take shape after Republicans won back a majority of the seats in the House of Representatives from the Democrats in 2010.But some conservative activists and Tea Party-affiliated politicians still wanted the shutdown to happen in order to force congressional Democrats and President to agree to deep cuts in spending and to repeal the ACA. Although the November 2010 election left Republicans in control of the House Democrats remained in control of the Senate and the White House.So there appeared to be a division of power,which led to a series of clashes over spending priorities and other policy matters."The country might need a government shutdown as a form of shock therapy'to raise awareness of the state of the federal government's finances"8 4.2 The intention of the Republicans The reason the Republicans want to stop Obamacare is that they are terrified that people will get it and like it.This would destroy the central political message of their party for the last four years While Republicans have attacked just about everything President Barack Obama has or has not done during his presidency."When people understand that Obamacare is first and foremost about getting health insurance,they are going to like it." As long as Obamacare was just a law on paper,and not a program that actually provided people with health insurance,the GOP could fabricate all sorts of horror stories .It could tell people that the government bureaucrats would be in the doctors'offices with them,that they would never be able to get a doctor.But once people start getting health care through the program,they will realize what the 7 Weisman,Jonathan;Parker,Ashley "Republicans Back Down,Ending Crisis Over Shutdown And Debt Limit"The New York Times October 16,2013,Retrieved October 17,2013 8 "Rep.Wslsh on spending:the country may need shock therapy"Fox News Channel February 28,2011 9 Dean Baker "The real reason for the government shutdown"ALJAZEERA AMERICA OCTOBER 3,2013 10 Group operating Profit
bill by a vote of 81 to 18.It passed in the House a few hours later,285 for and 144 against .President Obama signed the bill into law at 12:30am on October 17,effectively ending the shutdown and debt ceiling crisis.7 4. The root cause for the shutdown 4.1 Republican’s 2010 congressional victory The tensions began to take shape after Republicans won back a majority of the seats in the House of Representatives from the Democrats in 2010.But some conservative activists and Tea Party-affiliated politicians still wanted the shutdown to happen in order to force congressional Democrats and President to agree to deep cuts in spending and to repeal the ACA. Although the November 2010 election left Republicans in control of the House Democrats remained in control of the Senate and the White House.So there appeared to be a division of power,which led to a series of clashes over spending priorities and other policy matters. “The country might need a government shutdown as a form of ‘shock therapy’ to raise awareness of the state of the federal government’s finances” 8 4.2 The intention of the Republicans The reason the Republicans want to stop Obamacare is that they are terrified that people will get it and like it.This would destroy the central political message of their party for the last four years .While Republicans have attacked just about everything President Barack Obama has or has not done during his presidency. “When people understand that Obamacare is first and foremost about getting health insurance,they are going to like it.” 9 As long as Obamacare was just a law on paper,and not a program that actually provided people with health insurance ,the GOP 10could fabricate all sorts of horror stories .It could tell people that the government bureaucrats would be in the doctors’offices with them,that they would never be able to get a doctor.But once people start getting health care through the program,they will realize what the 7 Weisman,Jonathan;Parker,Ashley “Republicans Back Down,Ending Crisis Over Shutdown And Debt Limit” The New York Times October 16,2013, Retrieved October 17,2013 8 “Rep.Wslsh on spending:the country may need shock therapy” Fox News Channel February 28, 2011 9 Dean Baker “The real reason for the government shutdown” ALJAZEERA AMERICA oCTOBER 3, 2013 10 Group operating Profit
Obamacare is. The Republicans hope they can somehow grab a concession that will lead to the unraveling of Obamacare before it begins to take hold.And they think that if they can delay the program for a year,perhaps they can delay it again next year thus they can persuade the insurance companies to end the program. 5.The main effects 5.1 On federal government operations During the shutdown,most non-exempt government employees were furloughed.This put about 800,000 public servants on indefinite unpaid leave starting October 1.Key government functions,such as air traffic control,stay active under emergency funding statutes,though other related functions(such as training and support these services)are suspended.Some agencies and departments--such as the United States Department of Veterans Affairs and Social Security Administration,are also largely unaffected.While veteran and military benefits are funded a year in advance,furloughed civilians had a large impact on the military and their families.Services to families are affected.The U.S Postal Services is self-funded ad continued normal operations. 5.2 On economic Lost wages of Federal employees will amount to about 1 billion a week.A three-week shutdown would reduce the GDP of the U.S by 0.9%11 The negative economic effect of the shutdown will be particularly severe in the Washington D.C.Metropolitan area.Approximately 700,000 jobs could be affected at a cost of 200 million a day Local communities heavily dependent on the Federal government has seen losses of 76 million a day in tourism-related sales 5.3 On foreign policy 5.3.1 Asia-Pacific On October 4,the White House announced that Obama's trip to Brunei,Malaysia,the Philippines and Indonesia,where he was scheduled to attend the 2013 Asia-Pacific Economic Cooperation meeting in Bali,would be cancelled due to the government shutdown.In addition,the Obama administration's efforts to push forward the proposed Trans-Pacific Strategic Economic Partnership trade pact with Gittleson KimWhat's the economic impact of a U.S government shutdown" BBC News October 1,2013 Retrieved October 1,2013
Obamacare is. The Republicans hope they can somehow grab a concession that will lead to the unraveling of Obamacare before it begins to take hold.And they think that if they can delay the program for a year,perhaps they can delay it again next year thus they can persuade the insurance companies to end the program. 5. The main effects 5.1 On federal government operations During the shutdown,most non-exempt government employees were furloughed.This put about 800,000 public servants on indefinite unpaid leave starting October 1.Key government functions,such as air traffic control,stay active under emergency funding statutes,though other related functions(such as training and support these services)are suspended.Some agencies and departments--such as the United States Department of Veterans Affairs and Social Security Administration,are also largely unaffected.While veteran and military benefits are funded a year in advance,furloughed civilians had a large impact on the military and their families.Services to families are affected.The U.S Postal Services is self-funded ad continued normal operations. 5.2 On economic Lost wages of Federal employees will amount to about $ 1 billion a week.A three-week shutdown would reduce the GDP of the U.S by 0.9%11 The negative economic effect of the shutdown will be particularly severe in the Washington D.C. Metropolitan area.Approximately 700,000 jobs could be affected at a cost of $ 200 million a day Local communities heavily dependent on the Federal government has seen losses of $ 76 million a day in tourism-related sales 5.3 On foreign policy 5.3.1 Asia-Pacific On October 4,the White House announced that Obama’s trip to Brunei,Malaysia,the Philippines and Indonesia,where he was scheduled to attend the 2013 Asia-Pacific Economic Cooperation meeting in Bali,would be cancelled due to the government shutdown.In addition,the Obama administration’s efforts to push forward the proposed Trans-Pacific Strategic Economic Partnership trade pact with 11 Gittleson Kim “What’s the economic impact of a U.S government shutdown” BBC News October 1, 2013 Retrieved October 1, 2013
eleven otherother countries,was compromised.12 5.3.2 Europe On October 4,U.S Trade Representative Michael Froman announced that a scheduled meeting with European Union diplomats regarding the proposed Transatliantic Free Trade Area would be postponed as U.S officials could not travel to Brussels. Bibliography [1]http://en.wikipedia.org/wiki/United_States federal_government shutdown of 201 3#Effect on federal_government_operations [2]Becker Bernie "Republican congressman talks government shutdown"The New York Times September 10,2010 [3]"Here's How a Government Shutdown Hurts the American People"The White House Blog Retrieved October 1,2013 [4]Korte Gregory "Shutdown's economic toll on parks:76 million a day"USA Today October 10,2013 Retrieved October 17,2013 [5]Lee Don "A government shutdown could hurt economy more now than it did in 1995"Los Angeles Times September 30,2013 Retrieved October 1,2013 [6]Meichtry Stacy "Shutdown Hits Normandy,But some U.S.Landmarks Reopen" The Wall Street Journal October 13,2013 Retrieved October 20,2013 12 Dyer Geoff"Shutdown puts trade talks on ice"Financial Times.October 4,2013 Retrieved November 9,2013
eleven other other countries,was compromised.12 5.3.2 Europe On October 4,U.S Trade Representative Michael Froman announced that a scheduled meeting with European Union diplomats regarding the proposed Transatliantic Free Trade Area would be postponed as U.S officials could not travel to Brussels. Bibliography [1]http://en.wikipedia.org/wiki/United_States_federal_government_shutdown_of_201 3#Effect_on_federal_government_operations [2]Becker Bernie “Republican congressman talks government shutdown” The New York Times September 10, 2010 [3] “Here’s How a Government Shutdown Hurts the American People” The White House Blog Retrieved October 1, 2013 [4]Korte Gregory “Shutdown’s economic toll on parks:$ 76 million a day” USA Today October 10, 2013 Retrieved October 17, 2013 [5]Lee Don “A government shutdown could hurt economy more now than it did in 1995” Los Angeles Times September 30, 2013 Retrieved October 1, 2013 [6]Meichtry Stacy “Shutdown Hits Normandy,But some U.S. Landmarks Reopen” The Wall Street Journal October 13, 2013 Retrieved October 20, 2013 12 Dyer Geoff “Shutdown puts trade talks on ice” Financial Times. October 4, 2013 Retrieved November 9, 2013