For most of the world, a government shutdown is a very bad thing, the result of revolution or invasion or disaster. But America’s unique political system has turned this into a bargaining tool, a frequent occurrence over the past 40 years that has cost the economy billions in lost output and caused hundreds of thousands of workers to miss paychecks. Shutdowns also distract leaders from the urgent work of putting the nation on a fiscally sustainable path.
In a shutdown, nonessential federal programs cease to operate and employees are furloughed. A few key programs continue unaffected, including Social Security and Medicare, which are authorized by law to spend without annual approval, as well as interest payments on the national debt. The Office of Management and Budget (OMB) publishes detailed contingency plans for all agencies to guide their operations during a shutdown.
Locally, a shutdown can disrupt essential services like air traffic control and public health monitoring; lead to delays in passport processing, small business loans, or tax refunds; limit food safety inspections; and shut down visitor centers and bathrooms at national parks. In a prolonged shutdown, local governments can be forced to step in with resources and staff to keep services running, but that may not be enough to offset the lost productivity.
In addition to the economic costs, shutdowns reflect poorly on the United States internationally. Our global allies and adversaries can see that our democracy struggles with funding and budget issues, making us less stable and more prone to political brinksmanship.