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Top 10 Interesting Facts About Government Shutdown

Published on 21 October, 2013 at 6:00 pm By

The US has witnessed government shutdown at least 17 times in its history. In such a situation, government departments are officially closed for business till the time shutdown lasts. The situation results when the Congressmen belonging to both the parties are unable to reach some sort of consensus over finalizing of spending bill for each year. Such a situation affects all the non-essential employees of federal government and services. The people are rendered unemployed till the time the log jam gets resolved. Government Shutdown is an interesting term in itself and you should really check out what it means for the American Citizens! Listed below are top 10 interesting facts about government shutdown that might not have heard about:

10. Food Chain Unchecked:

The Food and Drug Administration Department (FDA) sends most of its food inspectors on leave. Bulk of the food products in the country, therefore, will remain unchecked. This means that most of the food products are not overseen properly and almost always carry some health risks. That’s not the worst implication. There’s more. Read on.



9. Be Exposed To Flu:

As government shutdown continues, the Center for Disease Control and Prevention won’t see any activity happening in the near future. This simply means that you need to be a little more careful with your health as flu season is just around the corner. This can lead to increase in healthcare related costs. Flu exposure can be really worrisome for the already cash strapped citizens of the country who almost certainly would feel more pressurized.


8. No Federal/Home Loans:

People are unable to draw federal loans when shutdown persists and hence, families would not be able to purchase homes or finance small time businesses. The only way out for homeowners and businesses is to deal with private players during this time.

No Federal/Home Loans

7. National Parks Are Closed:

Those who were planning for vacations must cut on their plans as government shutdown calls for closing of national parks. And, they are everywhere. This affects the tourism industry extensively. Millions of dollars are lost each day due to the prolonged economic logjam.  As per economists, 3 to 4 week long shutdown amounts to around $55 billion of revenue loss. Almost 750,000 people will cancel their trips to national parks each day.


National Parks Are Closed

6. Forget About Purchase of Gun:

Everyone across the world clearly knows about the hard grown fact how much Americans love their guns. This can be reasoned out from the recent shooting incidents. However, they need to put some brake on the shooting spree for at least the time shutdown remains intact as federal gun permits are not processed during shutdown.

Forget About Purchase of Gun

5. Legislators Will Be Paid Still:

Neither the President nor 535 members of the US Congress will have a hard time as ‘Federal employees’ (essential employees). They will get their paychecks, as usual. Strange, sad and weird, but true. When most of the federal employees are unpaid during this hour of shutdown for being part of non-essential employee category, why are the legislators left free to enjoy? In actuality, they are the ones responsible for the shutdown.

Legislators Will Be Paid Still

4. Suspension of Pays of Federal Employees:

The shutdown mostly results in suspension of pay cheques to federal employees which are considered non-essential. Only those which are categorized as essential employees are fit to draw salaries during this hour of fiscal tightening – these are the only government employees who continue to work during government shutdown in the US.

Suspension of Pays of Federal Employees

3. All the Parole Hearings on Hold:

The government shutdown implies delay in parole hearing. This can substantially affect the people seeking parole and their near and dear ones. Additionally, the proceedings of the lawsuits too are delayed by a great margin.

All the Parole Hearings on Hold

2. Decline of Stock Markets:

Usually stock markets are hit upon by the shutdown. In almost all the previous 17 incidents of shutdown, the stock market has slumped badly. On an average, stock markets fell down by 0.5% to 1%. If the talks regarding spending bill and raising the limit of debt ceiling doesn’t reach some sort of consensus, Dow Jones for instance can experience a further fall.

Decline of Stock Markets

1. GDP Loss:

The most important fact associated with government shutdown is that it accounts for a loss of around 0.15% point of quarterly GDP; at least this is what figures state for the American economy. If the shutdown lasts longer, the losses can accumulate to a bigger number of people. The economy may take some time to get back on track post government shutdown.


GDP Loss


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