USA in chaos: Shutdown harms millions and slows the economy!

USA in chaos: Shutdown harms millions and slows the economy!

The United States has been experiencing a major shutdown since October 1, 2025, which has now lasted over a month, making it the longest in the country's history. The reason? The US Congress was unable to agree on a new budget law. It is estimated that between 670,000 and 750,000 employees have been temporarily laid off, while around 730,000 will have to continue without pay. Particularly affected are government employees and food aid recipients, who are suffering from the loss of financial support. Workpoint Today reports that the impact could be up to $14 billion.

The conflict between Republicans and Democrats is seen as the main cause of the budget crisis. Republicans are calling for cuts to various programs and more funding for border security, but Democrats are rejecting this. A temporary budget law that was supposed to allow an extension of the deadline until the end of November was not approved. How ZDF today declared, this is the 15th shutdown since 1981, and it shows that Congress is unable to make the necessary decisions.

Economic consequences

The economic impact of the shutdown is serious. Analysts warn that the US economy could contract by about 0.1% per week. A four-week shutdown could reduce growth by 1% in the fourth quarter of 2025, and even more if it continues for eight weeks. According to the Congressional Budget Office (CBO), a long-term shutdown could damage the EU economy by more than 16 billion euros. Between $7 billion and $14 billion could be permanently lost, depending on the duration of the shutdown. Many employees rely on savings and seek support from private aid organizations,as financial hardships continue to grow.

While some essential services such as air traffic control are being maintained, under pressure from employees having to work without pay, many public facilities, including museums and national parks, are closed. These shutdowns lead to longer waiting times, slower processing of applications and a general standstill in public administration. Poynter notes that lost productivity from furloughed employees is affecting the performance of the entire nation.

Political fragility

The shutdown reveals the political fragility in the US and the inability of the two major parties to reach an agreement. President Trump has also suggested that furloughed employees may not receive retroactive pay, which could further exacerbate the situation. Last year, Congress was on the verge of a shutdown, but was able to avert a financial standstill. There is currently no breakthrough in negotiations in sight and uncertainty remains as to how long the shutdown will last.The latest developments suggest that the fronts between Republicans and Democrats could harden further.