There’s a lot of scare tactics around these supposed government furloughs of workers.
If the Republicans in the House choose to shut down the government over the debt ceiling limit. 60% of the employees will be furloughed. That will put people out of work until American stops functioning, and then we’ll all go back to work in the midst of a worldwide economic crisis.
Alternatively, if Congress cannot come up with more revenue or balanced program cutbacks by March 1, 2003, Sequestration tied to a 2012 spending bill will take place. Then the federal budget will be cut across the board by $120 billion dollars, half from discretionary programs like WIC and early childcare and half from Defense. That’ll go on for 10 years.
These two events may coincide. Some Tea Party activists in the House of Representatives want the government to default on its debts. They figure they can do that by not approving an increase in borrowing . They say that’s one way to cut spending.
Instead, most likely 70 or 80 Republicans in the House will vote with the Democrats to keep the government running. But in return they will want $60 to $100 billion cut from Medicare and Social Security, public television, EBT, Head Start, and ObamaCare every year for ten years.
Big financial institutions and most big corporations are against the shutdown. So, I wouldn’t worry too much about it. It’s most just big talk by small people rustling up fear to scare Americans into giving up the things they earned like their retirement programs, as Social Security and Medicare..