U.S. Govt. Shutdown: Why It Happened, Economic Fallout & Effect On India | Trump Vs Democrats Crisis

The U.S. government has ground to a halt amid a bitter standoff between President Trump's Republicans and Democrats, with no end in sight. But what exactly is a government shutdown, and why does it matter to you? In this explainer, we break it down simply. What is a US Govt Shutdown? It hits when Congress fails to pass funding bills, freezing non-essential services. Nearly 4 million federal workers face delayed pay, while essentials like air traffic control grind on unpaid. National parks close, loans stall, and Social Security slows—chaos for millions. A Brief History: Shutdowns kicked off in 1980; we've seen 11 since, including Trump's epic 35-day 2018-19 border wall battle. Economic Impact on US: The 2013 shutdown cost $24B and shaved 0.6% off GDP. Each extra week docks another 0.1%—furloughs hit 750K workers, slashing $400M daily in spending. Could it spark a recession? Prolonged gridlock risks tipping the scales. Why India Should Care: US turmoil + tariffs could weaken the rupee, disrupt trade, and spook investors. Watch for global ripples on India's growth. How It Ends: Only Congress funding + Presidential signature restarts the machine. Stay tuned for updates. Subscribe for more global econ breakdowns!