Government Shutdown Impact - US government shutdown continues with no end in sight [1] - Senate Democrats blocked a Republican measure to pay military troops and some federal workers during the shutdown [1]

Most European governments have spent too little on defence. But puniness is not the continent’s only problem. We explain why many countries also have the wrong sorts of forces https://t.co/DCJLHFgHcV ...

Government Spending & Fiscal Policy - The IMF suggests the UK could decrease inequality by reallocating government expenditure from welfare, wages, and overheads to investment [1] - Shifting government spending towards investment could strengthen the UK's public finances [1]

Government Shutdown & Workforce Impact - The Trump administration is potentially using the government shutdown to reduce the federal workforce, possibly impacting thousands of employees [1] - The administration might leverage the shutdown to cut funding from disfavored programs [2] - OMB's plan suggests that approximately 23% of federal employees could be furloughed if the shutdown persists [3] - Around 154,000 federal employees accepted buyouts earlier in the year [4] Fiscal & Political Dimensions - The government faces a significant financial challenge, potentially leading to insolvency [3] - The shutdown is viewed as a matter of political priorities, with conservatives aiming to reshape the federal bureaucracy [9] - Project 2025 aims to change the dynamics within the federal workforce, potentially reducing the influence of unions [10][11] - Democrats are seeking a 15 trillion increase in spending, which Republicans oppose [5] Spending & Debt - Mandatory spending on programs like Social Security, Medicare, and Medicaid constitutes over 75% of federal spending and grows faster than the economy [6] - A Republican reconciliation bill previously increased the deficit by approximately 4 trillion over ten years [7] - Some analysts believe tax cuts could stimulate more growth than tax increases [8]

A Japan bond auction eased investor nerves over concerns that Sanae Takaichi's near-certain elevation to the country's premiership will trigger more government spending and fan inflation: Here is your Evening Briefing. https://t.co/fbaEAcx6n2 ...

Core Insights - The ongoing government shutdown is expected to last until at least October 15, with a 70% probability of extending beyond that date, primarily due to budgetary disagreements between Democrats and Republicans [1][2][3] Budgetary Disagreements - The impasse is largely centered around healthcare spending, with Republicans proposing cuts while Democrats seek to maintain and extend enhanced Affordable Care Act (ACA) subsidies, which could add $1.5 trillion to the national debt over the next decade [4] Market Impact - Historically, government shutdowns have had minimal impact on the stock market, with the S&P 500 often performing well during such periods; for instance, during the 2018 shutdown, the S&P 500 rose by 10% [6] - Essential services like Social Security are expected to remain unaffected by the shutdown, alleviating some concerns regarding public benefits [5] National Debt Concerns - Despite the shutdown, government spending continues unabated, contributing to a rapid increase in national debt, which has risen by $1.7 trillion in less than three months, approaching $38 trillion [7] - The prolonged shutdown underscores ongoing fiscal challenges, with investors focusing on the implications of sustained government spending rather than the temporary nature of the shutdown [8] Price Action - The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ) experienced declines, with SPY down 0.0015% and QQQ down 0.42% [10]

Japanese defense and tech shares soared on speculation they’ll benefit from more government spending, as pro-stimulus conservative Sanae Takaichi looks likely to become the nation’s next prime minister https://t.co/TvzB6DRJa8 ...

Spending Trends - UK spending on children with educational needs and disabilities has risen by two-thirds over the past decade [1] - The spending has reached £16 billion [1]

The US government pays $1.2 trillion on its interest expense alone.Shutting down the government is unironically the best cost-cutting measure in decades. https://t.co/lMyyhqHx4h ...

🇺🇸 TRUMP: “We’ll probably have a shutdown” as he comments on government spending. https://t.co/eE2xdvANPj ...