This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Do You Care if the Government Shuts Down?

NEW YORK (TheStreet) -- As the Friday midnight deadline to finalize a new full-year federal budget bill approaches, many Americans are expressing concern over the possible consequences of a full blown government shutdown.

Some analysts fear that a federal shutdown could potentially derail the U.S.'s already fragile economy. If the government is shuttered, hundreds of thousands of federal employees would be told to stop working and would be placed in a temporary non-pay status, which could lead to a decrease in consumer confidence and spending.

On the other hand, besides the relatively small percentage of civilians employed by the federal government, many Americans have come to believe that a government shutdown wouldn't have much of an impact on their daily life at all -- unless they were planning to visit a national park this weekend.

The Internal Revenue Service would have to suspend processing paper returns and sending out refund checks, but it would still continue electronic tax-return processing -- and in what may be good news to some, tax audits would temporarily cease.

The Social Security Administration would continue to send out benefit checks, but no new applications would be accepted or processed.

While some fear that the backlog of newly retired applications could hurt consumer confidence, the impact might not be as bad as some may expect, Gus Faucher, director of macroeconomics at Moody's Analytics, told TheStreet.

"The Social Security recipients will eventually get their benefits," Faucher said. "That may displace some economic activity and may delay it somewhat but I don't think it will be a substantial impact."

While all "non-essential" government employees would be furloughed, all essential personnel, such as emergency workers, security personnel and air traffic controllers, would still report to work, the Office of Personnel Management explained.

That means the military would continue to deploy, the U.S. Border Patrol would remain on duty beyond Friday's deadline and U.S. Postal Service mail deliveries would continue as usual.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs