Government Shutdown

As of January 28th the 35 day  partial government shutdown has ended with a 3 week deal to reopen the government . Furloughed workers are workers who aren’t getting paid or having their expenses covered by the government.  Once the government reopens they will be given back pay. Over 800,000 government workers are currently working without pay. Add in their spouses and immediate family members this government shutdown has affected millions. In this article we will go over how the government  shutdown affected homeowners .

What is a government shutdown

There are 3 branches of power in the government of the united states. The President, Congress and the Supreme Court .The United States government operates by Congress and voting on legislation, with the ones that successfully passed being sent to the President to sign into law. Both branches have the equal power to veto each other’s bill.  The longest government shut down was 21 days under the Clinton administration in 95-96. 18 days in the late ‘70s. Only 10 times in American History has the federal government shutdown The current government shutdown was caused by lack of mutual approval on a spending bill. When congress can’t agree on a budget government agencies can’t pay their employees.Congress authorizes government spending so when congress cannot agree on a budget then the various government agencies risk running out of cash flow. Some agencies were telling employees to go home. A huge chunk of the tsa agent workforce called in sick. Some services are more critical than others.  A lengthy shutdown may not stop social security but  will affect food stamps and welfare. Food Stamps will continue until end of February 15th.

Who was affected

Everyone who is retired or dependent on government assistance was affected.  This is for the federal government budget issue. The federal government has an influence on State and Local government . The government shut down is over. The President has reopened government funding for 3 weeks. There is a possibility there will be another government shutdown in the next  3 weeks. If this happens again it will have a negative effect on the economy. Laguardia Airport was closed down due to a shortage of Air Traffic Controllers. Lagurdia is a major international airport. This costs America billions of dollars due to less tourism. Payroll is more expensive during a government shutdown.  FDA was impacted.  Any raw food that you bought in the  government shutdown was’t inspected property. There will be an uptick in food borne diseases  following the month after the shutdown has happened

Who wasn’t affected

Post office workers and various  military branches were not affected.Social Security,Medicare ,and Medicaid are all running. New Applicants will have to wait. The US Postal Service is open and  will remain operational.

Ways to save money

At&t,Sprint,Tmobile,and Verizon all are offering flexible payment plans for government workers.

What to do if you are affected

We understand where you are coming.  Many of you  have children, elderly parents or both to care for. You have student loans, car payments, mortgages and rent that need to be paid. Many people have been surviving on credit for the time being. This isn’t great in the long run. Everyone needs an emergency savings fund in case situations like this happen. We have seen women fund their own maternity leaves through a savings fund.  If you exhausted your savings then focus on increasing your income with a temporary job. Sign up for uber or amazon flex for the time being or if you have a knack for real estate become a property scout for a real estate agent. A part time job to help pay the bills. There are various foodbanks and restaurants nationwide offering free food for furloughed workers. Celebrity Chef Jose Andres and his organization World Central Kitchen are opening up kitchens nationwide to help workers who haven’t been paid since December.

Related links

How Veterans Save Money On Real Estate

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