Government Shutdown

by Darwin on April 7, 2011

Finally, the debt ceiling crisis I highlighted months ago is getting some attention by way of an impending government shutdown if some compromise isn’t reached.  I have mixed feelings on the matter.  Primarily, our debt situation is way out of control.  It’s shameful actually, what we’re doing to the next generation of Americans who will be saddled with this debt.  On the other hand, shutting down the government – and then restarting it again, will result in much consternation and cost.  Think of the cost of all the contingency plans, contractual issues, pay issues, interruption of services, consumer spending government employees on furlough, etc.  At the end of the day, any incremental benefits derived from further negotiation may well have been wiped out by the action itself.  It’s too bad it took winding down to the 11th hour for our leaders to get around to some serious discussion on expenditures.

Inevitably, we’re seeing images of granny on the sidewalk and veterans’ benefits being “slashed” and all kinds of other dire warnings from the democrats in the cuts proposed by republicans.  But what’s the alternative?  Do nothing?  Or raise taxes on the rich of course – easy solution to every problem apparently.  My view is there can be no sacred cows.  EVERYTHING must be cut to some degree.  Every program, every special interest, everyone needs to feel some pain.  Inevitably taxes must likely go up as well – and not just on the rich.  After all, 47% of Americans pay no federal tax yet enjoy federal services.  So, the system’s pretty screwed up and whatever the politicians conjure up between now and midnight won’t fix the problem – they may actually make it worse.  But at least there’s recognition that there’s a problem.  That’s the first step.

With that, my favorite weekly reads, some of my top content and some Carnivals that hosted my stuff:

Around The Web:

Oblivious InvestorWhen to Claim Social Security Benefits (One Working Spouse)

Financial Highway5 Easy Ways to Get Your Kid Saving At Any Age

fivecentnickelThoughts on Tipping – Pardon the Rant

The Simple DollarPersonal Finance and the Idea of Freedom

The MishToo Many Bureaucrats and They Are Paid Too Much


Some Yakezie:

Financial SamuraiState Budget Problems Are Going To Screw Us All

Wealth PilgrimWhat is Groupon and Why It’s Evil

Invest it WiselyStay at Home Dads and Suga Mamas

MoneyCrashers10-Step Plan for How to Start a Mobile Food Truck Business

Len PenzoTrue Story: What Happens When You Can’t Pay the Restaurant Bill

Stuff I Wrote Here and Abroad:

Wisebread: 4 Reasons Why a Roth IRA May be Better Than Your 401(k)

SeekingAlpha: Shorting Leveraged ETFs to Profit in Any Market

ETFBase: Incredible Silver Pairs Trade – If You Can Find the Shares to Short

and More:


Carnivals That Included My Content:

Wealth Builder

Carnival of Personal Finance

Yakezie Carnival

Totally Money Carnival

Carnival of Wealth

Carnival of Personal Finance

Festival of Stocks

Best of Money


{ 4 comments… read them below or add one }

Len Penzo April 7, 2011 at 10:55 pm

I welcome a shutdown! Bring it on!

Hopefully, once everyone sees the sun will still rise in the east each morning and businesses will continue operating as if nothing ever happened, most Americans will begin to realize just how dispensable most of our federal government really is. Even better, maybe they’ll also realize that the cost of maintaining it (or God forbid, expanding it even further) isn’t worth all the money we’re currently spending!

All the best,

Len Penzo dot Com


Darwin April 8, 2011 at 8:14 am

You may just get your wish! A few hours to go…


Ravi Gupta April 8, 2011 at 9:00 am

I’m a contractor doing an internship with the government and it will be interesting to watch how this goes down. Federal vs. Private sector are different animals (I’m a republican at heart… free markets and all that jazz), I think it will be interesting to see the largest employer in America be shut down for a while.

-Ravi Gupta


krantcents April 8, 2011 at 4:30 pm

It seems that the Republicans and Democrats are playing a high stakes game of chicken. At least as of this morning they were close, compromise works for the moment. Then they should roll up their sleeves and actually solve the problems. I am not an advocate of Paul Ryan’s solution, however it is a solution vs doing almost nothing.


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