How the world was saved from a Shutdown and a Default

NaMo and his serious band of saffron waving social media mendicants can heave a sigh of relief. And so can RaGa, his mom, sister, sundry uncles and aunties. And best of all, so can you and me. Yayy!

Hooray, the US shutdown did not happen, the default on US debt payment did not happen and Xinhua’s aspirations did not get fulfilled.

I am sure all this sounds interesting (and reassuring) but how the fuck does it make a difference to you or me. Does it? Could it?

Quite simply US central government provides various services to its citizens. One such service is health-care for the vulnerable sections of the American society. Quite recently, Obama expanded his commitment to provide more healthcare social benefit and this more is what has come to be know as ‘Obamacare‘. And anything more would cost more. And the same has to be paid for. Unfortunately, the permission to actually pay – not only for this ‘more’ but even for existing services – is provided by the elected representatives of the US government. And this is where it became messy for Mr. Obama.

These elected representatives don’t want to increase their spend. Sounds logical? So they said, if we pay more for Obamacare, something else needs to give way. In my home when the family has to go on a vacation, i starve my beers!

Now the US federal government employs a lot of people (around 2 million, possibly) and many of them are real important and critical (security, health, etc.) and others do some real fun stuff. But they are not critical. And so, roughly 500,000 (or more?) of such federal employees were furloughed. That is, they were asked to stay at home and their wages ceased.

So, it was obviously with some relief when yesterday (16th October 2013), the world heard the good news that this shutdown was over. Though it is actually only deferred, or ‘kicked ahead’ as some would say.

This is obviously good news – more so if you are one of those furloughed. Since now, wages are back. But how does it impact you and I – more so if we are not-Americans. Well, in any direct way, it does not.

While this shutdown was dramatic (possibly emotive) it was the specter of US Default that prompted Xinhua, the Chinese news agency, to call for ‘de-Americanisation’ of the world.

…to be continued

This entry was published on October 17, 2013 at 9:01 pm. It’s filed under Economics, India, Politics and tagged , , , . Bookmark the permalink. Follow any comments here with the RSS feed for this post.

One thought on “How the world was saved from a Shutdown and a Default

  1. Pingback: The default (that never was) has only got deferred | @work @play

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