Name: VIPPER 2013-10-05 13:41
US reels from effects of government shutdown
Much of the US government ground to a halt as Democrats and Republicans blamed each other for a partial shutdown that closed federal agencies, national parks and research facilities across the nation.
Ominously, there were suggestions from both parties that the shutdown, in its second day, could last for weeks.
The effect of the shutdown was felt also at the US Embassy around the world. The non-essential services have been held back.
An official of the embassy updated that it was offering only consular services. Visa applications are still being processed and the embassy's senior management was at work, but was told to suspend non-essential management including with the media.
WHY DID THE SHUTDOWN HAPPEN?
The US federal government had no choice. The US financial year ended on Sept 30, and politicians on Capitol Hill have failed to agree on a new budget for the 2013-2014 financial year. Without a budget deal approved by both parts of Congress, the House of Representatives and the Senate, there's no legal agreement to pay non-essential staff.
WHY COULDN'T THEY AGREE ON A DEAL?
Under the US Constitution, the president cannot unilaterally bring in legislation. And despite weeks of talks, Republicans continue to include cuts and delays to Mr Obama's Affordable Care Act in the budget legislation they sent to the Senate.
HOW MUCH DAMAGE WILL IT CAUSE?
If people aren't getting paid, they won't spend as much in the shops. They may be unable to meet essential financial commitments, such as mortgages and credit card payments. Analysts at IHS Global Insight have calculated that it will knock US$300 million a day off US economic output (total US nominal GDP, or output, was about US$16 trillion last year).
WHY DOESN'T IT HAPPEN IN OTHER COUNTRIES?
The shutdown situation is a product of the US democratic system. The Guardian reported. The president is both head of state and head of the federal government, without a guaranteed majority in either of the legislative bodies where new laws are debated and voted upon (because presidents, congressmen and women and senators are elected separately). The president can't simply ram laws through Capitol Hill.
VISIT POSTPONED
US President Barack Obama has postponed a visit to the Asia-Pacific Economic Cooperation and regional summits. He will be replaced by US Secretary of State John Kerry.
Much of the US government ground to a halt as Democrats and Republicans blamed each other for a partial shutdown that closed federal agencies, national parks and research facilities across the nation.
Ominously, there were suggestions from both parties that the shutdown, in its second day, could last for weeks.
The effect of the shutdown was felt also at the US Embassy around the world. The non-essential services have been held back.
An official of the embassy updated that it was offering only consular services. Visa applications are still being processed and the embassy's senior management was at work, but was told to suspend non-essential management including with the media.
WHY DID THE SHUTDOWN HAPPEN?
The US federal government had no choice. The US financial year ended on Sept 30, and politicians on Capitol Hill have failed to agree on a new budget for the 2013-2014 financial year. Without a budget deal approved by both parts of Congress, the House of Representatives and the Senate, there's no legal agreement to pay non-essential staff.
WHY COULDN'T THEY AGREE ON A DEAL?
Under the US Constitution, the president cannot unilaterally bring in legislation. And despite weeks of talks, Republicans continue to include cuts and delays to Mr Obama's Affordable Care Act in the budget legislation they sent to the Senate.
HOW MUCH DAMAGE WILL IT CAUSE?
If people aren't getting paid, they won't spend as much in the shops. They may be unable to meet essential financial commitments, such as mortgages and credit card payments. Analysts at IHS Global Insight have calculated that it will knock US$300 million a day off US economic output (total US nominal GDP, or output, was about US$16 trillion last year).
WHY DOESN'T IT HAPPEN IN OTHER COUNTRIES?
The shutdown situation is a product of the US democratic system. The Guardian reported. The president is both head of state and head of the federal government, without a guaranteed majority in either of the legislative bodies where new laws are debated and voted upon (because presidents, congressmen and women and senators are elected separately). The president can't simply ram laws through Capitol Hill.
VISIT POSTPONED
US President Barack Obama has postponed a visit to the Asia-Pacific Economic Cooperation and regional summits. He will be replaced by US Secretary of State John Kerry.