In a surprising turn of events, the US government has been shut down due to a deadlock between Republicans and Democrats in Congress. Obama’s Affordable Care Act (ACA), famously known as ‘Obamacare’, has been at the epicentre of the growing political polarization of the US. The Republicans who have a majority in the House of Representatives refused to renew government funding unless changes were made to the ACA. The ACA, which is considered to be the greatest overhaul of the US’s healthcare system in recent history, has remained controversial since it was passed in 2010. The ACA is aimed at providing affordable healthcare insurance to the millions of Americans who do not have cover. It also aims at making the insurance industry more competitive through setting up ‘insurance exchanges’: regulated online marketplaces where individuals can purchase private insurance plans. According to the ACA, the US government would provide federal subsidies to those who are unable to afford even the minimum level of insurance required by this healthcare plan. Republicans have continuously lambasted Obama over ACA, his brainchild, blaming him for excessively regulating and interfering with market forces, which remain the hallmark of American capitalist society. Others are criticizing it for the heavy burden it will put on the exchequer. Moreover, critics also question whether the US government has the constitutional authority to enforce such changes to the nation’s healthcare system and if states can opt not to comply with the provisions of the ACA.
The prolonged deadlock between the Republicans and Democrats shows the extent of the current political divide in the US. Usually divisive issues such as these are resolved before drastic steps need to be taken such as the shutting down of the government. Approximately 800,000 public servants have been put on unpaid leave and many government offices, museums and national parks have been closed. The Democrats refused to succumb to the pressure exerted by the Republicans who are using their leverage in order to coerce the Obama administration to make amendments to the ACA. However, the rigid attitude adopted by both parties is puerile to say the least and may have an adverse effect on the sluggish US economic recovery and the world economy in general. If this political crisis is not resolved soon and a compromise reached, grave consequences may follow. The deadline to raise the $ 16.7 trillion US debt ceiling is fast approaching and if the Republicans do not cooperate with the Democrats in this matter too, the US government will default on its obligations. The last time the US government was forced to shut down was 17 years ago during President Clinton’s tenure. The standoff lasted for 28 days on that occasion. Hopefully better sense prevails this time and a compromise is reached sooner for the sake of millions of hardworking people who will be affected by this logjam. *