December the 21st feels like yesterday. We all knew it had to happen, that it was indeed, inevitable—The Federal Government shutdown.
This isn’t the first time that the US federal government shutdown has taken the whole nation (and the world) by storm. This hot topic is making people scratch their heads, forcing them to think beyond walls of their imagination.
Speaking of walls, an important catalyst to this federal government shutdown was President Trump’s stance on building a concrete wall between USA and Mexico (his key promise before coming into power), the disagreement on which led to the shutdown.
There are more serious repercussions to the federal government shutdown than closed public museums and no more visits to the Grand Canyon, there are people’s lives at stake. At least 800k federal employees have been sent home WITHOUT PAY.
The dust doesn’t look like settling before bricks pile up, and it could take days (or months) before the federal government reopens and gets it all back to normal. Amidst turbulent times, we, the People take the hit.
Here are 8 gunshot wounds that Federal Government Shutdown leaves on our bodies.
1. Interest Rates will climb the Wall
The Federal Government shutdown triggered a series of chain reactions that have made way to the ultimate consumer. The credit rating agencies will try to downgrade America’s debt rating, which means the interest rates might change.
High-interest rate means a high possibility of missed payments, which will ultimately impact our credit score. It’s best to manage it from day one, rather than watching the beautiful disaster right in front of your eyes and doing nothing.
2. Unemployment Benefits? They’re on leave
Unemployment benefits are bread and butter for lots of citizens (quite literally) who have been out of the game for more than 26 weeks. States borrow funds from the Federal Government to give out this benefit.
Now with Washington closed out, States will inevitably run out of money to give unless it opens back up. Due to this, the strugglers shall struggle even more. The benefits will run out soon and the American Dream will be just a Dream.
Getting a job isn’t easy, but here’s how you can make money without a job.
3. No Tax Refunds Time to Call IRS
If you haven’t paid your taxes yet, you still have to (oof). The IRS lines are open. Pay it ASAP.
But if you’re planning to file for an Income Tax Refunds, then guess what? IRS won’t pick up your call.
The IRS is still asking you to pay tax, but won’t entertain your tax refund queries. Just like that attention seeker who leaves you on read.
BREAKING: The White House announced that Tax Refunds will go out.
4. The Loan in ‘Federal Loans’…
If you’ve applied for a federal loan, the first thought that came to your mind after reading about the Federal Government Shutdown must’ve been just that. Well, your worst fears might become a reality— federal loans might be off the cards.
In this troublesome political atmosphere, we advise not to wait for it if the need for money is urgent. Apply for a personal loan from Prosper and get a decent APR along with relaxed repayment period.
Check out this list of best personal loan choices this year and pick one off the menu. The Feds might take some time.
5. The Natives are suffering
In the Native Country, nearly every expense is paid for by the Government. After the shutdown, these states have been forced to scan their empty pockets to find money. A report from the New York Times tells the story of one such tribe.
The Chippewa Indians tribe is trying their best to get by in these worrisome times. It costs more than $100,000 every day to run clinics, put food and drink on the table, and cover the basic necessities.
This was never a problem before, but this shutdown has lasted way too long, which means the tribe is running out of money—they are suffering.
6. Furlough sounds so… Harmless
It’s such an innocent word, isn’t it? Sounds like a French Dessert. Well, this baby-faced demon holds more than 800,000 people captive. They have a job, but employers don’t have money to give.
As a result, they get indefinite unpaid leave. That’s called furlough. Not so tasty now?
Many intense pieces of research in departments like NASA have been stalled because of unexpected furlough, and The Department of Education, Agriculture, and Congress are just a few of many doors that are indefinitely closed.
7. Buying a House? Good Luck!
FHA, along with other government-led housing programs account for 30% of all transactions. Now that the FHA has stopped processing applications, people who are in line to own their humble abode won’t be able to get it that easy.
Owning a house is quite a task already for many American citizens, and FHA was trying its level best to brush this problem aside with their assistance. With Federal Government shutdown, FHA has their hands tied. Owning a house is tougher than before.
8. Vacations won’t be the same
The government-run museums, zoos, and amusement parks are closed down because they can’t run themselves. These attractions will open only when the shutdown shenanigans end and the federal budget is agreed upon.
Smithsonian Museums and national zoos are some notable closed sites along with Art Galleries. Tours and travel packages to the Grand Canyon have been stalled (you can still sneak in, we’d advise against it).
But Life Goes On…
Yes, the Government shutdown hurts real badly. Since 21st December, people have lost their jobs, some temporary while some might not come back.
People are paying more in interest than what they were before; they’re tapping into rainy day savings, getting more loans and what not. Taxpayers are not getting a refund.
But the good guys are doing their bit. The Congressional Federal Credit Union (CFCU) is offering furlough loans to the shutdown-stricken federal employees, while Wells Fargo, Chase and Bank of America are offering to waive overdraft fees.
The Federal Government Shutdown has been on for a long time now, and that’s not how many Americans dreamt to start their New Year.
All we can do is wait and watch as both parties reach a compromise and normalcy resumes before it gets worse than what has already happened.