Shutdown Deja Vu

The video discusses the challenges of budget disagreements in Congress, comparing past and present conflicts. It highlights the potential consequences of a prolonged government shutdown, including impacts on federal workers, consumer spending, and economic data collection. The video also examines how a shutdown could affect the Federal Reserve's operations and decision-making due to a lack of critical economic data.

What was the main issue in the 1981 budget standoff between Congress and President Reagan?

• Healthcare reform

• Tax cuts for the wealthy

• The proposed $695 billion budget

• The size of the military budget

How have most government shutdowns since 1977 affected the stock market?

• They have resulted in a brief dip followed by a gain

• They have led to a prolonged market downturn

• They have had no impact on the market

• They have caused a significant market crash

What is a unique aspect of the current potential shutdown compared to past ones?

• It is expected to last only a few days

• It is primarily a conflict within the Republican party

• It involves a disagreement between Democrats and Republicans

• It is the first shutdown since 1977

What could be a consequence of a prolonged government shutdown on federal workers?

• They will be permanently laid off

• They will receive immediate compensation

• They will receive a pay raise

• They will work without pay temporarily

Why might a long shutdown pose a problem for Federal Reserve policymakers?

• It will cause a surplus in the federal budget

• It will increase inflation rates

• It will prevent the collection and release of crucial economic data

• It will lead to a decrease in interest rates