Shutdown in United States: Budget Crisis Costs the Economy $400 Million Daily

The Pentagon has sent nearly 335,000 personnel on unpaid leave, and the Agency for Global Media, responsible for foreign policy propaganda on TV and radio, has halted its activities indefinitely.

Experts estimate that the country’s GDP could be losing around one billion dollars each week due to the deadlock. As the new fiscal year begins with unresolved issues, the fourth shutdown during Donald Trump’s presidency commenced on October 1st. Once again, the democrats and the republicans failed to reach an agreement on the budget, missing all deadlines.

Washington has ground to a halt; federal government activities are suspended, and officials have gone on an indefinite furlough. Not everyone will return to their posts, as evidenced by diplomatic tweets and statements from Donald Trump.

President Trump remarked, “Democrats want to shut everything down. When you shut things down, layoffs happen - and that affects a lot of people. The last thing we want is to shut everything down. But during shutdowns, you can get rid of a lot of unnecessary things”.

He also announced plans to meet with military leaders, stating, “I’ll meet with generals, admirals, and other leaders. If I don’t like someone, I’ll fire them on the spot”.

The Congressional Budget Office estimates that the shutdown costs the U.S. around $400 million daily. This systemic issue has recurred more than 20 times over the past 50 years, costing the economy approximately $40 billion in total. The longest shutdown occurred during Trump’s first term - lasting 35 days - forcing federal workers to seek online donations and visit food banks for assistance.

Initially, disputes centered on funding for the border wall. Now, the sticking point is healthcare. The White House aims to reduce health insurance costs, blaming those who fund the sector for providing substantial funds to undocumented migrants.

Vice President J. D. Vance commented, “For the American people watching this unfold: the reason your government is shutting down right now is that, despite overwhelming support from most Republicans in Congress and some moderate Democrats, Chuck Schumer’s Democratic wing, led by AOC, shut down the government. They said, ‘We’ll reopen it only if you allocate billions of dollars for healthcare for illegals.’ That’s a ridiculous demand.”