: The government shutdown lowdown

by | Sep 29, 2023 | Stock Market

The federal government will shut down 12:01 a.m. ET Sunday unless House Speaker Keven McCarthy (R., Calif.) can get a small group of Republican representatives, including Rep. Matt Gaetz of Florida, to agree on a temporary spending bill. This shutdown may turn out to last longer than previous ones, according to analysts.

Of course, much of the federal government’s work will still take place, and in case you are worried, members of Congress will continue to receive their salaries. Robert Schroeder, the Washington bureau chief for MarketWatch, summarizes five things that would be affected by a government shutdown and five things that would not be affected: Affected: 1. Food aid for millions of people will be disrupted, the White House has warned, reports MarketWatch’s Zoe Han. 2. With Securities and Exchange Commission staff furloughed, initial public offerings will freeze up, the agency’s chairman said this week, reports our Chris Matthews. 3. Economic data that investors chew over every day would also be cut off, probably including the next monthly jobs report, which is due Oct. 6. 4. You will still be able to travel, but things could get slow at the airport. As the Wall Street Journal notes, the 2019 shutdown saw longer waits at airports around the country after employees at the Transportation Security Administration stopped coming to work. 5. And if you’re a federal employee, you won’t get paid, at least not while a shutdown is going on. Not affected: 1. If past is prologue, U.S. stocks may not suffer. As Victor Reklaitis writes, there have been six government shutdowns since 1978 that lasted five days or more, and the S&P 500 stock index gained in the four most recent shutdowns. 2. Social Security checks will go out. But the agency’s daily work on benefit verifications and earnings-record updates will grind to a halt, writes MarketWat …

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