Government Shutdown

Moneybestpal Team

A government shutdown happens when a nation's federal government is unable to carry out its regular operations due to a lack of funding. This often happens when the government is unable to reach a consensus on an annual budget or enact a bill providing emergency financing to keep the government operational.

Most non-essential government functions are halted during a shutdown, and many government workers are forced to take unpaid leaves of absence from their jobs. Air traffic control, law enforcement, and other crucial services continue to be provided, however, workers of these organizations are often obliged to work without pay until the closure is resolved.

The economy can be significantly impacted by government shutdowns because many companies and people who depend on government services or contracts may endure delays or disruptions. They can also have political ramifications because they frequently show a breakdown in the cooperation of elected authorities in the passage of legislation and administration of national affairs.

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