Financial Lessons from a National U.S. Government Shutdown

[GoldenEagle]

4 Financial Lessons from a National Government Shutdown

 

A government shutdown certainly has a negative affect on the country. News programs and political websites spread messages from each party back and forth while many people find themselves feeling the pain. Government shutdowns hurt.

 

This post is not meant to question the larger picture of the government’s problems. That would take a volume of books and would involve far too much political theory for me to understand. The government shutdown reminded me of a few lessons I thought I should pass along to you. These are true not just during or after a government shutdown, but throughout nearly any point in life. The shutdown, and the financial hurt it has caused many people, just bring these lessons to light.

 

1. It’s going to rain (so build an emergency fund)!

That statement was made famous by Dave Ramsey, when he tries to encourage people to have an emergency fund. We do not like to think that “life” will happen to us, and then it does. For those with governmental positions that have been furloughed, that is all too real. Some I have heard from had an emergency fund. While they had to tighten their financial belts, their stress level was much lower than those who were trying to figure out what to do without such reserves. You may not have such emergencies, but most likely you will someday face one! Build an emergency fund.

 

2. Think long-term.

It is a blessing to live in a society where we can access news and information 24 hours a day. We can always be up-to-date and know exactly what is going on. That “in-the-moment” viewpoint, however, can often cause us to take our eyes off the long-term goals we have. When we are watching the news and things are terrible, we can make very unwise long-term decisions. Markets have done well over the long haul. Do not make your financial decisions based solely on today’s news.

 

3. Be a giver.

This may seem like a strange item for this list, but I think it is essential. When we face a difficult time, our tendency is to focus only on ourselves. The longer that goes on, the more we focus on ourselves, the more we forget the people around us. Seek out ways to give to those who are truly hurting all the time, and you will be more empathetic to those who are struggling in specific times (e.g., those who are furloughed). After all, it may be you who is in need of some of those gifts some day.

 

4. Don’t rely on Washington to be your savior.

I love living in America, and I am thankful for our system of government. I always need to remember, though, that I am ultimately responsible for my own decisions and that includes the decision to trust God, come what may. I don’t know much about the specifics of the recent government shutdown. I can know, though, that God is ultimately in control and has charged me with being a good steward of my money. I need to trust that God will provide for me, but I also need to work hard and do all I can to earn and save to help myself, my family, and those around me.

 

Which one of these impacts you the most?

What lessons have you learned from the government shutdown?

[LadyKay]

 

What lessons have you learned from the government shutdown?

Conforming what I have always known. That government is not my friend.

[Fez]

Where I live, one wonders if the government ever opened. Walk into most government offices and you can't tell the difference......

[Guest]

What lessons have you learned from the government shutdown?

 

 

I (Along With My Wife) Have Been Through Every Government Shutdown As A Federal Employee Except For The Last One

 

Since 1976, when the United States budget process was revised by the Budget Act of 1974 the United States Federal Government has had funding gaps on 18 occasions: Funding gaps did not lead to government shutdowns prior to 1980 when President Carter requested opinions from Attorney General Benjamin Civiletti on funding gaps and the Anti-Deficiency Act. His first opinion said that all government work must stop if Congress does not agree to pay for it. He later issued a second opinion that allowed essential government services to continue in the absence of a spending bill.

 

Year    Start date (exclu­sive)    End date (exclu­sive)    Total days of funding gap    Government Shutdown during Funding Gap?    President    Senate    House    Circumstances

       

1976    Sep 30    Oct 11    10    No    Ford    Dem    Dem    Citing out of control spending, President Gerald Ford vetoed a funding bill for the United States Department of Labor and the United States Department of Health, Education, and Welfare (HEW), leading to a partial government shutdown. On October 1, the Democratically-controlled Congress overrode Ford's veto but it took until October 11 for a continuing resolution ending funding gaps for other parts of government to become law.

       

1977     Sep 30    Oct 13    12    No    Carter    Dem    Dem    The Democratically-controlled House continued to uphold the ban on using Medicaid dollars to pay for abortions, except in cases where the life of the mother was at stake. Meanwhile, the Democratic-controlled Senate pressed to loosen the ban to allow abortion funding in the case of rape or incest. A funding gap was created when disagreement over the issue between the houses had become tied to funding for the Departments of Labor and HEW, leading to a partial government shutdown. A temporary agreement was made to restore funding through October 31, 1977, allowing more time for Congress to resolve its dispute.

       

1977     Oct 31    Nov 9    8    No    Carter    Dem    Dem    The earlier temporary funding agreement expired. President Jimmy Carter signed a second funding agreement to allow for more time for negotiation.

       

1977     Nov 30    Dec 9    8    No    Carter    Dem    Dem    The second temporary funding agreement expired. The House held firm against the Senate in its effort to ban Medicaid paying for the abortions of victims of statutory rape. A deal was eventually struck allowing Medicaid to pay for abortions in cases resulting from rape, incest, or in which the mother's health is at risk.

       

1978    Sep 30    Oct 18    18    No    Carter    Dem    Dem    Deeming them wasteful, President Carter vetoed a public works appropriations bill and a defense bill including funding for a nuclear-powered aircraft carrier. Spending for the Department of HEW was also delayed over additional disputes concerning Medicaid funding for abortion.

       

1979    Sep 30    Oct 12    11    No    Carter    Dem    Dem    Against the opposition of the Senate, the House pushed for a 5.5 percent pay increase for Congress members and senior civil servants. The House also sought to restrict federal spending on abortion only to cases where the mother's life is in danger, while the Senate wanted to maintain funding for abortions in cases of rape and incest.

       

1981    Nov 20    Nov 23    2    Yes    Reagan    Rep    Dem    President Ronald Reagan pledged that he would veto any spending bill that failed to include at least half of the $8.4 billion in domestic budget cuts that he proposed. Although the Republican controlled Senate passed a bill that met his specifications, the Democratically controlled House insisted on larger cuts to defense than Reagan wanted as well as pay raises for Congress and senior civil servants. A compromise bill fell $2 billion short of the cuts Reagan wanted, so Reagan vetoed the bill and shut down the federal government. A temporary bill restored spending through December 15 and gave Congress the time to work out a more lasting deal.

       

1982     Sep 30    Oct 2    1    Yes    Reagan    Rep    Dem    Congress passed the required spending bills a day late.

       

1982     Dec 17    Dec 21    3    Yes    Reagan    Rep    Dem    The House and Senate wished to fund job programs, but President Reagan vowed to veto any such legislation. The House also opposed plans to fund the MX missile. The shutdown ended after Congress abandoned their jobs plan, but Reagan was forced to yield on funding for both the MX and Pershing II missiles. He also accepted funding for the Legal Services Corporation, which he wanted abolished, in exchange for higher foreign aid to Israel.

       

1983    Nov 10    Nov 14    3    Yes    Reagan    Rep    Dem    The House increased education funding but cut defense and foreign aid spending, which led to a dispute with President Reagan. Eventually, the House reduced their proposed education funding, and also accepted funding for the MX missile. However, the foreign aid and defense cuts remained, and oil and gas leasing was banned in federal wildlife refuges. Abortion was also prohibited from being paid for with government employee health insurance.

       

1984    Sep 30    Oct 3    2    Yes    Reagan    Rep    Dem    The House wished to link the budget to both a crime-fighting package President Reagan supported and a water projects package he did not. The Senate additionally tied the budget to a civil rights measure designed to overturn Grove City v. Bell. Reagan proposed a compromise where he abandoned his crime package in exchange for Congress dropping the water projects package. A deal was not struck, and a three-day spending extension was passed instead.

       

1984    Oct 3    Oct 5    1    Yes    Reagan    Rep    Dem    The October 3 spending extension expired, forcing a shutdown. Congress dropped its proposed water and civil rights packages, while President Reagan kept his crime package. Funding for aid to the Nicaraguan Contras was also passed.

       

1986    Oct 16    Oct 18    1    Yes    Reagan    Rep    Dem    Disputes over multiple issues between the House and President Reagan and the Republican Senate forced a shutdown. The House dropped many of their demands in exchange for a vote on their welfare package, and a concession of the sale of then-government-owned Conrail.

       

1987    Dec 18    Dec 20    1    Yes    Reagan    Dem    Dem    The House and Senate opposed funding for the Contras and wanted the Federal Communications Commission to renew enforcement of the "Fairness Doctrine". They yielded on the "Fairness Doctrine" issue in exchange for non-lethal aid to the Contras.

       

1990    Oct 5    Oct 9    5    Yes    G. H. W. Bush    Dem    Dem    President George H. W. Bush vowed to veto any continuing resolution that was not paired with a deficit reduction package, and did so when one reached his desk. The House failed to override his veto before a shutdown occurred. Congress then passed a continuing resolution with a deficit reduction package to end the shutdown.

       

1995    Nov 13    Nov 19    5    Yes    Clinton    Rep    Rep    President Bill Clinton vetoed a continuing resolution passed by the Republican-controlled Congress. A deal was reached allowing for 75-percent funding for four weeks, and Clinton agreed to a seven-year timetable for a balanced budget.

       

1995–1996    Dec 15    Jan 6    21    Yes    Clinton    Rep    Rep    The Republicans demanded that President Clinton propose a budget with the seven-year timetable using Congressional Budget Office numbers, rather than Clinton's Office of Management and Budget numbers. However, Clinton refused. Eventually, Congress and Clinton agreed to pass a compromise budget.

 

2013 Sep 30 Oct 17 16 Yes Obama Dem Rep Due to disagreement regarding inclusion of language defunding or delaying the Patient Protection and Affordable Care Act (PPACA), more commonly known as ObamaCare, the Government did not pass a substantial funding bill. Funding was agreed to by the President and Congress for active military pay and back wages for furloughed employees. In addition, the House offered very small funding measures for a few, high-profile functions, which the Senate and White House rejected as "game-playing" while the Senate offered bills that did not include language to defund or delay the PPACA, but the House rejected them. On October 16, Senate Democrats and Republicans agreed to a deal that extended funding for government services until January 15, making only minor adjustments to the PPACA and other funding. This resolution was quickly adopted by both houses in bipartisan numbers, and was signed early next morning by President Obama. https://en.wikipedia.org/wiki/List_of_U.S._government_shutdowns#List_of_U.S._government_shutdowns

 

And The Basics Never Changed: I Knew We Would Get Back-Payed So I Enjoined The Extra Days Off With The Many Dates In The Park With Baby And Mommy And Late Nights Of Family Fun And Love. While My Poor Wife Worried (Despite My Assurances) And I Think Never Did Enjoy The Full Benefits Of This Special Paid Leave.

In every thing give thanks: for this is the will of God in Christ Jesus concerning you. 1 Thessalonians 5:18

 

~

 

Look

 

Thus saith the LORD; Cursed be the man that trusteth in man, and maketh flesh his arm, and whose heart departeth from the LORD. Jeremiah 17:5

 

Up

 

Blessed is the man that trusteth in the LORD, and whose hope the LORD is. Jeremiah 17:7

 

And Rejoice~!

[bfloydo]

 

Which one of these impacts you the most?

What lessons have you learned from the government shutdown?

 

 The impact and lesson are both the same for me..... " A house divided against itself cannot stand ". I best focus on my house(soul), and keeping it unified with God's will for me, anything else is the work of Satan.   Blessings  "B"

[other one]

well what I've learned is that if you are retired and living on income from annuities the government shutdown isn't a big deal until gasoline prices go up.

 

what happens next though is kind of scary...

[alphaparticle]

What I learned: The republican party has no spine after all.

[other one]

What I learned: The republican party has no spine after all.

 

 

you really can't say that about them all.

[alphaparticle]

 

What I learned: The republican party has no spine after all.

 

 

you really can't say that about them all.

 

I said it about the entity which caved, and that I hold to. I don't need to, neither did I, nor would I, claim that every republican is spineless, but I think that is clear enough in my post.

[other one]

 

 

What I learned: The republican party has no spine after all.

 

 

you really can't say that about them all.

 

I said it about the entity which caved, and that I hold to. I don't need to, neither did I, nor would I, claim that every republican is spineless, but I think that is clear enough in my post.

 

 

well, that isn't what you said and it does not describe the people representing Oklahoma.  and it was a bit offensive.  Most of our people are just as upset as are you.