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I Wouldn’t Mind Government Shutdown

imagesThe last time the federal government shutdown was back in November 1995 and the Dow Jones was at 5,074. Three years later it was up to 9,100 (UP 80%).

The Newt Gingrich led the Republican House of Representatives to battle on Capitol Hill to reduce government spending. When the previous fiscal year ended on September 30, 1995, the President and the Republican-controlled Congress had not passed a budget. A majority of Congress members and the House Speaker, Newt Gingrich, had promised to slow the rate of government spending; however, this conflicted with the President’s objectives for education, the environment, Medicare, public health and other government spending programs.

When President Clinton refused to cut the budget in the way Republicans wanted, Gingrich threatened to refuse to raise the debt limit, which would have caused the United States Treasury to suspend funding other portions of the government to avoid putting the country in default.

Clinton said Republican amendments would strip the U.S. Treasury of its ability to dip into federal trust funds to avoid a borrowing crisis. Republican amendments would have limited appeals by death-row inmates, made it harder to issue health, safety and environmental regulations, and would have committed the President to a seven-year balanced budget. Clinton vetoed a second bill allowing the government to keep operating beyond the time when most spending authority expires.

In the end, President Clinton and Newt Gingrich (depending on what side of the aisle you lean) are credited with the positive impacts of the government shutdown including the balanced-budget deal in 1997 and the first four consecutive balanced budgets since the 1920s.

I don’t care who gets the credit, but would love for the government to shrink again (so much wasted spending of our tax money) allowing for the private sector to grow as it did after the last time we had a shutdown.

What are your thoughts?

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