The longest shutdown in American history started because of an impasse between President Trump and Congress. He demanded $5 billion to fund the construction of a wall on the US-Mexico border, but Democrats refused. Now 800,000 federal workers are about to miss a second paycheck, and some workers are refusing to keep working without pay.
As the shutdown enters its second month, its consequences are becoming more visible in American business and life. Startups in Silicon Valley are unable to issue IPOs. Indian reservations are not receiving federal benefits to support daily costs. And thousands of immigration hearings have been delayed due to closed courts.
The effects are a reminder of how many facets of life the federal government touches — and how large a hole it can create when it stops working.
The economy
At the Securities and Exchange Commission, more than 4,000 staff members are furloughed, delaying initial public offerings for companies, according to the Associated Press. Highly valued companies such as Uber and Lyft are waiting for lawyers to review paperwork that would qualify them to have public stock.
Private firms on Wall Street that help process IPOs are also losing thousands of dollars due to the stalled offerings of smaller, cash-strapped companies, according to a report by Ciara Linnane for MarketWatch.
The Federal Trade Commission, which is responsible for helping victims of identity theft, is shuttered — leaving victims to deal with the consequences on their own, NBC News reports.
The Small Business Administration has stopped approving routine small-business loans, forcing some entrepreneurs to resort to “desperate measures,” the Wall Street Journal’s Ruth Simon found. Some company owners have stopped their expansion plans; others are considering more expensive streams of cash.
If you’ve got faulty brakes, don’t call the Consumer Product Safety Commission. The agency isn’t open to issue recalls or provide reliable information about unsafe consumer products, according to the Wall Street Journal’s Heidi Vogt.
A CNN report found that company merger plans are also stalled without SEC personnel to process asset combinations. Businesses are also struggling to issue W-2s without the help of the IRS, and to get answers about new tax law.
Some economic reports concerning housing and retail prices aren’t coming out, according to Brad McMillan for Forbes. For example, the monthly Housing Starts report won’t be published until the shutdown ends. This report by the US Census Bureau gives housing market forecasts.
Tax season is around the corner, but the IRS is not able to issue W-2 forms or answer employer questions about the new tax law, HR 1. According to a report by Brian Faler for Politico, refund delays will be likely this year and could strain middle-class voters who once supported Trump’s policies. The new tax code is reportedly the most significant tax change in a generation.