Unit 2: Macro & Global Economics

The U.S. government is headed straight for a train wreck in terms of them getting shut down and being required to negotiate Obama's healthcare reform bill. Republicans of the House of Representatives are lobbying for rejection of any kind of healthcare reform, and the Senate, whose majority is Democrat will not allow for the bill to die. The two houses must come to an agreement by Tuesday or congress will be shutdown for almost exactly the same reasons it was shutdown last time in 1995-96.


If the Senate can curtail some of the bill and make it less strenuous on the budget of the government the House is much more likely to sign it. However both the House and the Senate have voted to repeal a portion of the bill which would remove the tax on medical devices, they also voted in favor of the military will not losing pay, should a shutdown occur. Senator Richard Durbin, (D) IL, said he would be willing to consider this however it would take many of these small details to keep the government from shutting down.  Rank-and-file Republicans claim that they are most likely not going to have to take blame from the public for government shut down because of the unpopularity of the "Affordable Care Act" which has heard most of its approval from conservative districts. The Democrats countered by saying it will gain popularity when the public gains more knowledge and provides real benefits for those unable to get healthcare without government assistance.

Although free healthcare seems like the answer to some of the problems Americans face as far as getting the health assistance they need. Many business owners have stopped hiring because of the Act, fearing they will end up having to pay much more for healthcare than ever before. A poll of 603 businesses whose annual sales are below $20 million, found that 48% believe their bottom line will be significantly higher, and therefore do not want to see the bill come into effect.

The end of the fiscal year on September 30, forced the House to make a decision on whether to shutdown the government or keep funding Obamacare. Voting 230-189 the decision to shutdown nearly all government services has become reality.

Links & Sources

• House Votes 230-189 To Shut Down The US Government... Republicans Rejoice
• Where each state stands on ACA's Medicaid expansion
• Clinical trial patients to Congress: 'Stop acting like babies'
• 19% of Small Businesses Reduced Employees Because of Obamacare
• With shutdown looming, Senate returns to work after Reid vows to reject House spending bill
• President Obama speaks statement On government shutdown crisis