This shutdown is as pointless as all the others
Published in Political News
With funding expired, new appropriations bills stalled and progress on a stopgap nonexistent, Congress has for the 15th time since 1981 allowed the federal government to shut its doors. Don’t expect this round to be any more edifying than the others.
Republicans want to extend current spending levels until November, as a bill passed by the House on Sept. 19 would do. To lend their support to a similar measure in the Senate, and thus overcome a filibuster, Democrats have issued a list of policy demands (on health care and much else), on which Republicans have so far refused to compromise.
One week on, the two sides remain far apart. They should both see the virtue in minimizing the harm caused by this needless impasse and getting back to work.
Democrats had many reasons to avoid this clash. As always, the public is overwhelmingly opposed to shutting down the government. Historically, parties making such demands have almost invariably taken the blame for the resulting chaos. And with their own ranks divided about what they hope to achieve with this maneuver, Democrats are risking more than the usual political blowback.
This shutdown, moreover, could prove more harmful than most. A memo circulated last month by the Office of Management and Budget instructed agencies to consider permanently firing many of the employees who would ordinarily be furloughed until a deal was reached. Although Senate Minority Leader Chuck Schumer called the memo “an attempt at intimidation,” he and his colleagues would be better off assuming it is entirely sincere.
With the labor market already weak, it’s not a great time for sweeping government layoffs. Bloomberg Economics estimates that a three-week shutdown could push the unemployment rate up by as much as 0.4 percentage points, to 4.7%; if the administration follows through on its threats, the rate might remain as high as 4.5%, rather than receding as normal after the government reopens. Each week of a shutdown might cut 0.2 percentage points from annualized real GDP growth for the quarter.
That’s to say nothing of the broader harm done to the public. Air traffic is already starting to slow thanks to staffing shortages. Active-duty troops may miss their next paycheck. Depending on how long the shutdown lasts, taxpayers can expect worsening disruptions to regulatory inspections, essential data collection, permitting and export certifications, certain loans and benefits, government contracts, and more. The tourism industry alone could lose $1 billion a week.
Under less fraught conditions, the Democrats’ policy goals might be reasonable. They hope to extend tax credits for purchasing insurance on Affordable Care Act exchanges, roll back cuts to Medicaid that were part of the reconciliation bill enacted in July, and restrict the ability of the White House to hold up congressionally authorized spending. Still, this shutdown is unlikely to get them closer to any of these objectives.
What it will do is cause a lot of unnecessary chaos. Perhaps, if the pain is felt widely enough this time, both parties will be moved to reform America’s broken budgeting process — for instance, by automatically triggering continuing resolutions whenever funding expires. They might even begin to see the wisdom in passing regular appropriations bills on time.
Alas, that’s for another day. For now, Democrats should agree to a stopgap bill to turn the lights back on. Republicans, including the president, should commit to good-faith negotiations over the health-care impasse. Everyone involved should agree that no one wins from governance-by-episodic-crisis.
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