This weekend, Republicans and Democrats again failed to come to an agreement concerning a deal on the debt ceiling extension that would end the government shutdown. The implications of United States defaulting on its own debt would be catastrophic for U.S. markets. Many American families are dependent on the federal government as a source of income. The government shutdown means 800,000 federal employees are not currently able to work. With an economy that is still in recovery, burdening the hundreds of thousands of Americans that rely on the government for financial support will ultimately stifle the economy’s already lethargic progress.
Although the overall economy has got better since the financial crisis, many American families are still struggling to make ends meet. Working and middle class Americans still have not fully recovered from the financial meltdown that occurred over five years ago. The government shutdown is just another blow to the average American family. Looking past the present shutdown, the broader issue at hand is that the average American family has always been at the metaphoric “short end of the stick”, a critical reason as to why the economy still cannot get going after so many years. It is the manufacturing plant workers, teachers, social workers, small business owners, etc. who drive the success of the economy over the long haul. Two-thirds of GDP (approximately 67%) are the consumers. How can the economy ever be at full fiscal health when its largest group of contributors is still struggling?
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