Government Shutdown 2013 Date: What Happens To Obamacare, Social Security, Other Services?

Government shutdown threats in 2013 continue to mount, but what happens to Obamacare and Social Security if a government shutdown happens?

As previously reported by The Inquisitr, the government shutdown 2013 history stretches back years, all the way back to laws created in 1917.

In order to prevent a government shutdown in 2013, both political parties would have to come to an agreement very soon. This seems unlikely to happen, with Sarah Palin urging Republicans to force a government shutdown and Nancy Pelosi insulting anyone considering a government shutdown. With six days left until the government shutdown date, and no agreement in sight, it seems almost a certainty Congress will let it happen.

What Happens: Government Shutdown Blues

On October 1, the 1982 Antideficiency Act would kick in, with President Obama being given some control what happens in a government shutdown. The IRS, US mail delivery, “essential” judicial work, and critical government functions will still operate normally under a government shutdown. But the government shutdown would affect air traffic control, national security, the handling of hazardous waste, food inspections, border protection, maintenance of the power grid and disaster assistance, and Federal programs, museums, and parks.

During the 1995 government shutdown, hundreds of thousands of government employees simply chose to not show up for work when their salaries were put on hold, but this only amounted to less than half of the government workforce. A 2013 government shutdown would result in the same thing and critical services would remain functioning via a funding gap resolution. But many government and defense contractors might find themselves on hold with projects so it’s possible some employees would be let go.

Government Shutdown: Obamacare

The only reason Obamacare is part of the government shutdown debate is because its budget has grown from the original $850 billion to almost $2 trillion, which Republicans claim could sink the economy. Despite threats of defunding Obamacare, the government shutdown would probably not slow Obamacare down one bit. Most of the implementation of Obamacare is occurring within state governments and the government shutdown affects only the Federal side. But even on the Federal side, Obamacare mostly affects the IRS, which, as already mentioned, will stay up and running during a government shutdown.

Government Shutdown: Social Security

Unfortunately, Social Security disability benefits funds are estimated to run out of money by 2016. The reason this happened is because Social Security disability claims rose rapidly and 14.5 million Americans are receiving benefits. This means this portion of the Social Security program is now running out a deficit instead of being self-sustaining as originally designed. The Congressional Budget Office projects Social Security to cost over one trillion in 2018, which is over one-third of the entire Federal budget.

The only goods news is that a government shutdown won’t affect the delivery of Social Security checks that many rely upon to live. Funding for Social Security is collected through payroll taxes, which is collected by States and the IRS, both of which will remain functioning under a government shutdown.

Government Shutdown: What Happens If The US Doesn’t Balance Its Budget

A government shutdown actually means the United States Federal government puts a hold on paying its debts. Yet, at the same time, if Federal spending is not put under control a Federal debt default becomes much more likely, which would hurt the United States credit rating even worse.

If the 2013 government shutdown doesn’t resolve anything the Federal government runs the risk of lowering the value of the US dollar to the point of creating a hyperflation scenario where the cost of everything doubles within months or even weeks or days. This final fiscal super cliff would make a government shutdown permanent in certain areas, with the Federal government unable to provide many of its basic functions that US citizens have come to rely upon.

With the government shutdown 2013 date quickly approaching, what do you think should be done to solve our debt woes?