The Student Newspaper of Saint Peter's Prep

The Petroc

The Student Newspaper of Saint Peter's Prep

The Petroc

The Student Newspaper of Saint Peter's Prep

The Petroc

Another Perspective: Washington Gridlock, Government Shutdown, Obamacare, and the Debt Ceiling

Another Perspective: Washington Gridlock, Government Shutdown, Obamacare, and the Debt Ceiling

As of this writing, the Country has been in the middle of a Government Shutdown since October 1, 2013, a total of two weeks. The Congress has the responsibility, according to the Constitution, to pass spending bills. The fiscal year for the U.S. Government runs from October 1 through September 30. Since Congress did not pass a spending bill by the beginning of the fiscal year, there has been a “shutdown” since October 1, 2013. Government services and employees are not funded and have all but stopped. Essential government services like military defense are still in place, but all non-essential services are either operating with skeleton crews or services have been stopped and workers have been furloughed.

Obamacare is at the center of the debate which caused the Government Shutdown. Obamacare refers to the “Affordable Care Act” which became law in 2010. The intention of Obamacare was to provide affordable health care and health insurance to Americans. Most of the provisions of Obamacare have already become effective. The remaining provisions will be enacted through the remainder of 2013 and 2014.

For the most part, Obamacare is not really dependent on the passage of a government spending bill as Obamacare is largely dependent on newly raised taxes. There are many Republicans who have opposed Obamacare and parts of the Affordable Care Act because it is viewed not good for employers and expensive. The Senate has been trying to negotiate to have some aspects of Obamacare reduced “defunded.” The Democrats view any change to Obamacare as a deal-breaker, and the stalemate continues.

Another important event on the horizon is the October 17, 2013 deadline for the “debt ceiling.” The current government shutdown is centered on government spending and the passage of a spending bill. Not to be confused with spending, the “debt ceiling” is related to the U.S. Government’s borrowing. The debt ceiling is effectively – the borrowing limit of the government to borrow money to pay its bills. It is similar, in effect, to a credit card limit. Unless the debt limit or debt ceiling is raised by October 17, 2013, the Government will run out of money. Effectively, the U.S. Government could default on its debt. This would have a severe impact on financial markets both at home and globally. It seems that the closer we get to the debt ceiling deadline, the more likely it is that we will have some progress in negotiations.

Stay tuned. (As a side note: President Obama will continue to receive his $400,000 per year salary. The Congress and Senate will also continue to be paid as their salaries are mandated by the 27th Amendment.)