US Shutdown: Deadline Passes Without Approval

US Government Shutdown Q&A

Updated: 5:35am UK, Tuesday 01 October 2013

Why is this happening now?

Normally the US federal budget is decided in March. Although it is proposed by the executive, headed by the president, it has to be put into law by the legislative branches of government – the House of Representatives and the Senate.

One element of the 2013/14 budget has upset the Republican Party more than any other.

Obamacare, as it has been called, is a healthcare plan that aims to provide greater access to affordable health insurance for poorer sections of society.

Several Republicans oppose it as it increases state spending and, they feel, interferes in what should be private matters.

In March, because the Republican majority House of Representatives and Democrat dominated Senate could not agree on a 2013/14 budget bill, a compromise was reached that kept the federal budget funded for a further six months while negotiations continued.

That six months was up on Monday at midnight. With no compromise reached and no bill approved to fund state spending, no money will be available to pay for non-essential services.

Why should the Republican Party do this?

American politics has become more partisan in recent years than at any time in recent history.

The 'Tea Party', a particularly right-wing, libertarian element of the Republican Party, has been increasingly determined to impose itself on the operation of the state.

Among its key aims are the reduction of the impact that government has on the life of an individual, and the reduction of government spending.

As well as believing federal government spending should be slashed in general, they believe Obamacare is in opposition to everything they stand for.

As a result, many Republicans who are allied to the Tea Party are so determined to stop Obamacare, they are prepared to effectively hold a gun to the head of government by refusing to back a federal funding bill that funds Obama's health care plans.

They want it thrown out or heavily watered down and this is their way of fighting for what they want.

Could this happen in the UK?

It is one of the particular characteristics of the US federal government system that the executive (i.e. the president and his cabinet), can be made up of people of a different political hue to the main chamber – the House of Representatives.

In the UK, the head of Government (i.e. the Prime Minister), only normally comes from the largest party, or grouping, in the main chamber (i.e. the House of Commons).

As a result, it would be rare for a Prime Minister in Britain to be opposed by the main chamber.

In America, the system of checks and balances that was put in place following the American Revolution means that a US president does not need the support of Congress.

This stops the President becoming too powerful, but can also mean that the head of state finds it impossible to push through legislation, as is happening at present.

What will happen next?

After the failure to reach a compromise, more than 800,000 federal government employees will be told not to come to work until a deal has been done.

Certain 'essential' government services, such as national defence, will still be provided but many of those deemed unessential will not.

With no funding approved, the federal government is also not allowed to borrow extra money.

As a result, in about two weeks it will effectively reach its credit limit and will be unable to pay interest on the debts it owes.

Many economists believe this could be disastrous for the US as world markets will lose confidence in its ability to pay its bills, with many investors potentially pulling out.

The consequences of that are hard to gauge but some fear it could trigger another world downturn.

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