The U.S. Reels from Looming Government Shutdown: Ripple Effects Growing by the Day

President Donald Trump on January 15 continued to warn the US government would have to “closed the door for a long time” if he was forced to do so for the National Assembly to approve the $ 5.7 billion budget to build a wall along the US – Mexico border to prevent illegal migrants.

StatusThe US government is partially closedStarting from December 22, 2018 after the Senate (controlled by the Republican Party) and the House of Representatives (controlled by the Democratic Party) did not agree on the bill of spending because of the aforementioned wall issue.

On the 25th day, despite the warning of President Donald Trump, Chairman of the House of Representatives Nancy Pelosi announced that he would not approve.wallBecause it is “ineffective and inhumane”.

Mỹ thấm đòn vì chính phủ đóng cửa - Ảnh 1.

About 800,000 federal employees have not been paid since the government closed partly on December 22, 2018. Photo: New York Times

According to the initial estimate of President Donald Trump’s administration, every two weeks the government closed partially, the US economic growth will drop by 0.1 percentage points. However, the White House on January 15 confirmed that every week closed, the US economy dropped to 0.13 percentage points growth. This means that the US economy takes nearly 0.5 percentage points for nearly 4 weeks to close the government – according to The New York Times.

Economic growth in the first quarter of 2018 reached 2.2%. Economic risks forced officials of the US Federal Reserve to request the central bank to suspend interest rates. Meanwhile, CEO DELTA Air Lines, Mr. Ed Bastian, predicted the situation of the government to close a part that will make the January revenue of this airline fall by $ 25 million.

In a move to minimize the negative impact, the US Department of Taxation (IRS) is asking 46,052 taxpayers to handle tax returns to work without pay. According to the AP, more and more people are worried about the tax refund of billions of dollars on January 28 will be delayed.

In addition to economy, diplomacy is also affected. At Foggy Bottom (neighboring Washington) and American embassies around the world, US State Department staff not only insecure in income and life but also worried about diplomatic programs that they have been very hard to promote for months or even years.

“From soft diplomatic programs such as Fulbright scholarships, cultural exchange to more important projects in the conflict area …, all are stagnant” – an American diplomat working in Africa shared with the magazinePolitico

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