Friday, 4 October 2013

American Shutdown - its reasons

This week's biggest news so far is the United Sates Government Partial Shutdown. Many of us are not taking it too seriously thinking it to be a problem for Americans but if this continues for a few more days or weeks it will not only affect Indian economy but also have a great ramification on Global Economy.

All this has started over the difference of opinion over the government's new healthcare policy which is popularly known as Obamacare. Now many of us must be wondering what is Obamacare.

To understand this, first we need to understand the political design of America. In America, they have two major parties, Democrats and Republicans. Currently, the Democrats are in rule. The Democrats have majority in Senate whereas the Republicans have majority in House of Representatives.

President Obama and the Democrats want to introduce a new healthcare system into the United States, which they believe will make healthcare more affordable for most Americans.

 What is Obamcare?
It's called the Affordable Care Act - nicknamed 'Obamacare' - and was made law in 2010, though much of it hasn't come into force yet. For the law to work, all Americans have to take out health insurance - in the past it's been optional. At the time 26 of the 50 US states challenged it in America's Supreme Court (the top court in the land). They claimed that it was illegal to make everyone have health insurance.The court narrowly decided that the Act would stand, but the Republican party continues to fight against the Affordable Care Act, saying it costs too much government money plus they don't believe that it's right for people to be forced to pay insurance against their wishes.

Due to this reason, Republicans didn't want to sign the budget plan for the next year, as it included putting the Affordable Care Act into practice. Both the Government lead by Democrats and Opposition led by Republicans, couldn't agree before the midnight deadline on America is now in shutdown mode - meaning only limited services are operating.

Now with the blame game going on between Democrats and Republicans as to which side is to be blamed for this serious situation.  Leaders from both the sides are trying to win the public support in their side and are not ready to back down.

Now with growing public fury over the situation, the Republican-controlled House has tried to push piecemeal legislation to fund individual departments and programs, but most Democrats, including Obama, want a comprehensive resolution that would reopen the whole government, not just bits of it.

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