WHAT HAPPENED IN THE US?

between 1 Oct and 16 Oct

2013

2013

1. NGUYỄN THỊ LINH2. VŨ THỊ MAY3. NGUYỄN THỊ NGA

US GOVERNMENT SHUTDOWN 2013

1• Definition and shutdown history

2• Reasons and impacts

3

• Re- opens and lesson for US and Vietnam

WHAT IS A GOVERNMENT SHUTDOWN?

Executive Branch Funding gap

1976 – 2013: 18TH SHUTDOWN

Longest: 21 days (1995- 1996) Shortest: 1 day

The president The number of shutdowns

General Ford 1

Jimmy Carter 4

Ronald Regan 8

George H.W. Bush 1

Bill Clinton 2

George W. Bush 0

OBAMACARE

Patient protection and affordable care act (PPACA)

Increase the quality and affordability of health insurance

OBAMACARE

For

President and the Democratic- led Senate

Against

The Republican-led House of Representatives

THE FIGHT

20 Sept: House of Representatives passed Continuing Appropriations Resolution

27: the Senate stripped 29: the House reinstated 30: the Senate declined

No compromise bill

IMPACT OF US GOVERNMENT SHUTDOWN

Economics

National security

Politics

ECONOMICS

the shutdown reduced fourth quarter GDP growth by 0.6 %.

Federal employees were furloughed for a combined total of 6.6 million work days

December 1995 –January 1996

2013

Time 21-day 16- day

The total number of employee furlough

days

4.3 million 6.6 million

Reason 7 appropriations bills were enacted

no agencies had received

ECONOMICS

The total compensation costs are about $2.5 billion

about $650 million for the Nov 1995 shutdown about $1 billion for the Dec 1995 – Jan1996

shutdown. 850,000 employees per day was

furloughed - 40% of the entire civilian Federal workforce.

TOURISM

401 federally run parks and attractions closed

TOURISM

all 19 museums and galleries closed their doors.

NATIONAL SECURITY

70% of intelligence employees are furloughed

Only 30% focus on

critical security needs

NATIONAL SECURITY

James Clapper - Intelligence Director ‘is a dreamland for foreign intelligence’

POLITICS

 Wall Street Journa magazine: 60% American want to

replace members of Congress in the next election

44% American blamed for Republican Party

POLITICS

German election ended successfully, and support to reform

Europe’s economy

The new reforms in China that establish a free trade zone in

Shanghai

Image of a separated and weak America

RE-OPENS & LESSON

Government reopen

The bill

The lesson

1. US GOVERNMENT REOPENS

Vote for Bill the Senate: 81 votes to 18 22pm, 16/10 the House: 285 votes to 144 Signs the a bill => ends the 16-day partial

government shutdown raises the debt ceiling

OBAMA’S STATEMENT:"begin to lift this cloud of uncertainty and unease from our businesses and from the American people"."We need to get out of the habit of governing by crisis," 

THE BILL:

Open the US government Raise debt ceiling & extends U.S

borrowing authority into February, 2014 avoid the potentially devastating

consequences to the global economy from a default on the U.S. debt.

FEDERAL AGENCIES REOPEN AND FEDERAL WORKERS SHOULD EXPECT TO RETURN TO WORK THURSDAY MORNING, 17/10

- PARKS, MUSEUMS AND MONUMENTS BEGIN TO OPEN, WELCOME VISITORS…

LESSON

How to operate the economy of its ability

Just dismiss ego for agreement

LESSON

How to operate the economy of its ability:

* Main reason: budget not enough to operate deadline for raise the debt

ceiling is near=> ”Let the grass grow under one’s feet” - Joe Hockey – Head of Aus Treasury -

LESSON Just dismiss ego for agreement - direct reason:the Republican Party >< President Barack Obama

SUMMARY

1• Definition and shutdown history

2• Reasons and impacts

3

• Re- opens and lesson for US and Vietnam

REFERENCES: http://edition.cnn.com/2013/10/16/politics/

shutdown-showdown/ http://www.voanews.com/content/congress-

passes-bill-avert-default-reopen-us-government/1771311.html

http://www.washingtonpost.com/politics/government-reopens-thursday-after-congress-passes-budget-deal-raises-debt-limit/2013/10/17/dbe7889a-371b-11e3-80c6-7e6dd8d22d8f_story.html