A Little US Government Shut Down

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By Douglas A. McIntyre Published
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The fight over the increase in the US debt ceiling is on hold for awhile. The Treasury Department said tax receipts were higher than expected so the ceiling may not be reached before the end of April. That will allow the debate about budget cuts to go on, perhaps until the Administration agrees to some reductions in spending that the Republicans want.

The current situation is very often compared to the 1995 “shut down” which was caused by a battle between President Clinton and a Republican Congress.

There are a number of arguments about what government spending programs would be most affected if the US essentially ran low on money and could not replenish its supplies through the issuance of new debt. The agencies most often mentioned are those which are not necessary to the daily operations of the nation and its national defense. That might include the Department of Energy, the Commerce Department, the Labor Department, Health and Human Services or Housing and Urban Development.

A shutdown of the government might give some small hint of whether all the departments of the government, at least those represented by Cabinet seats, are necessary. Almost all politicians argue that the government is too complex and has so many agencies and pieces that it creates unwieldy bureaucracy. If there was no money to support them all, the results could be telling.

The most recently added department might be the ones shut down the first. If they remains shuttered without major effect, perhaps they could be abolished completely. Since 1977, Energy, Health and Human Services, Education, and Homeland Security have been added. One has to wonder how the federal government operated without them for nearly two centuries.

No one believes that the federal government can be shut down for a long period, even on a limited basis. But, there could be one side benefit. It would be to tell whether every part of the federal system is absolutely essential or not.

Just kidding

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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