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How a government shutdown would (and wouldn't) impact consumers days before Christmas

While a government shutdown can cause significant disruptions, some services will continue to operate.

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A government shutdown just days before Christmas could have a range of impacts on consumers, affecting everything from travel plans to financial services.

By Friday morning, lawmakers were still working hard to reach a deal that would avert a U.S. government shutdown at 12:01 a.m. Saturday, after President-elect Donald Trump turned down a bipartisan funding proposal on Wednesday.

The most recent government shutdown took place in 2019 during Trump's presidency. That 35-day funding deadlock is estimated to have cost the U.S. economy about $3 billion, according to the Congressional Budget Office.

Here’s a breakdown of what might happen:

Travel Disruptions

Airport Delays: During a government shutdown, Transportation Security Administration (TSA) workers are considered essential and are required to stay on the job. However, without pay, many may choose not to report to work, leading to longer lines and delays at airports. This could be particularly problematic during the busy holiday travel period.

Air Traffic Control: Similar to TSA workers, air traffic controllers are also essential employees. They will continue to work, but the stress of working without pay could lead to increased absenteeism, potentially causing flight delays and cancellations
Mail and Deliveries

Mail and Deliveries 

Postal Service: The U.S. Postal Service operates independently of government funding, so mail and package deliveries would continue as usual. However, the deadline for deliveries to arrive by Christmas Day has already passed for some services.

Financial Services

Social Security: Social Security checks will continue to be distributed, as this program is considered mandatory and does not rely on short-term funding. However, those needing assistance from the Social Security Administration may experience longer wait times due to staff furloughs.

Stock Market: A government shutdown can create uncertainty in the stock market, potentially leading to increased unpredictability. Investors may experience anxiety as they watch their retirement accounts and stock portfolios during this period.

Public Services

National Parks: Many national parks and monuments would close to visitors, as seen in previous shutdowns. This could affect holiday plans for those looking to visit these sites.

Food Safety Inspections: Routine food safety inspections may be slowed down, raising concerns about public safety. This could impact consumers who rely on these inspections for safe food products.

Economic Impact

Federal Workers: Hundreds of thousands of federal employees might face furloughs, while essential workers would still be on the job without pay. This situation could create financial difficulties for many families, particularly during the holiday season.

Contractors: Federal contractors, such as janitors and cafeteria workers, may not be guaranteed back pay, adding to the financial difficulties faced by many during a shutdown.

Although a government shutdown can lead to major disruptions, certain services will still be available. Travelers might experience delays, but mail delivery and Social Security payments will continue as usual. The economic effects on federal employees and contractors could be quite serious, underscoring the wider implications of a government shutdown during the holiday season.

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