Government shutdown will hurt government employees most

The possible government shutdown is still looming, as Congress is appearing unable to reach a compromise on federal budget matters. There are individuals that will be harm by a shutdown if it occurs, though seems like that winning approval from less than the majority of the American people is more important that other considerations. Government employees will end up losing several days or weeks of pay, however little else will occur. Article source – Government employees to bear brunt of government shutdown by MoneyBlogNewz.

Federal shutdown services would continue

The federal government may end up in a temporary shutdown on May 16 because of the battle over a spending bill. Even with a shutdown, not everything will shut down. Some things will continue. Still, there will be the U.S. Postal service working. This is because it finances itself for probably the most part. According to MSNBC, any government service “involving the safety of human life or the protection of property” can’t legally be stopped in a government budget showdown. More than likely, Social Security will continue. This would make sense.

Government workers to pay the price

The individuals who stand to lose the most are government employees. Some won’t have to worry; air traffic controllers will nevertheless be needed, and allowing members of the military to miss a paycheck would be political suicide. Any clerical, managerial or financial businesses will have a hold put on the business though. Several of these employees have already had their pay frozen by the Obama administration. The Wall Street Journal states that all government contract workers will lose money. Any revenue that contractors or government employees lose is probably not reimbursed.

Preparing for shutdown

There were plans in place already. Several were prepared for a government shutdown. The Credit Union Times states that any members on temporary federal government shutdown layoffs could be able to get zero percent interest furlough loans from the Cabrillo Credit Union in San Diego. That organization offered comparable assistance in the 1995 – 1996 shutdowns, and government employees should check with their local credit union to see if there are similar programs available if they are members. Reuters reports that Treasury Secretary Timothy Geithner said he might end up going to the Social Security Trust fund and other sources to help with the shutdown giving funding to employees if there is a shutdown.

Citations

Wall Street Journal

online.wsj.com/article/SB10001424052748704587004576241033511757282.html?mod=googlenews_wsj

Reuters

reuters.com/article/2011/04/04/us-usa-budget-debt-idUSTRE7335BY20110404?pageNumber=1

MSNBC

msnbc.msn.com/id/42380178/ns/politics/

Credit Union Times

cutimes.com/2011/04/04/cabrillo-offers-0-interest-government-shutdown-loa