The US economy is suffocating due to the shutdown, with small businesses being the hardest hit

The US, the world’s largest economy, has been under a shutdown since October 1st, with no immediate prospect of ending. This is already impacting the US economy. Small businesses, in particular, are unable to access tax credits due to the shutdown, disrupting their businesses. Furthermore, millions of federal government employees are not receiving their salaries, preventing them from spending their savings. This is happening at a time when the US federal government’s debt has reached $38 trillion.

The shutdown has halted many essential government functions, including lending and the processing of tax credits. It is believed that if the shutdown continues for a prolonged period, companies may begin laying off employees. This is because people have no money to spend. This has impacted the business of many companies. For example, people have reduced dining out, impacting restaurant income. Due to the COVID-19 pandemic, it took many businesses several months to recover, and now the shutdown has worsened their situation once again.

Why was there a shutdown?
The last shutdown in the US began on December 22, 2018, and lasted 35 days, until January 25, 2019. This was the longest shutdown in US history. This cost the US economy $3 billion. The US government needs funds to meet its expenses. This funding is met through borrowing. A bill for this purpose is introduced in the US House of Representatives. However, this time the funding bill was not approved by Parliament, leading to a shutdown in the country from October 1.