Posted on Sep 29, 2023
What were the most significant consequences of past government shutdowns on military operations, and how can we mitigate them?
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As of Sept 29, 2023 another shutdown is coming which not only means our people won't get paid but all the supporting government operations the military relies on, won't be either. Most of us have unfortunately been here before. How did you manage, and what advice can you give others?
What are the potential impacts of the looming government shutdown on our military readiness and veterans' services, and how can we best support our troops and veterans during these uncertain times?
What are the potential impacts of the looming government shutdown on our military readiness and veterans' services, and how can we best support our troops and veterans during these uncertain times?
Posted 1 y ago
Responses: 7
Personally - I've always lived by the motto, "Rainy days will happen, so prepare for them to be floods". After 30+ years of doing the "pay me now, pay me later" approach, I didn't have any issue weathering the shut-down storm, however I know that I'm in the minority and many of my Soldiers were the 'paycheck-to-paycheck' types.
For those that were facing financial difficulty, we handled assistance on a case by case basis (AER, helping with bridge loans, etc). Only a few of the shutdowns actually affected when they were paid, so it wasn't a real issue for the majority of the shutdowns.
I know that "save for the future" doesn't help now (and didn't help those Soldiers then), but it did serve as a "reality slapping you in the face" example of why they have to have a financial buffer - because there WILL be rainy days ahead, and some of them WILL become floods.
Professionally - The majority of the impacts were on the acquisition side. There were extension options on contracts that weren't able to be executed so a work stoppage occured from the supported contractor. Most logistical contracts supporting operations and the intelligence systems were either fully funded already or multi-year, so they weren't affected either.
In almost all cases, operations weren't affected to any large degree - Intelligence collection still occurred, tactical missions were still executed, and not a single bureaucratic staff meeting was dropped (the green/blue suiter might show up instead of the civilian, but they still occurred).
There was one notable case where a LFX was canceled because it depended principly upon a contractor and there wasn't money appropriated yet for the next FY, but that's the only one that sticks out.
For those that were facing financial difficulty, we handled assistance on a case by case basis (AER, helping with bridge loans, etc). Only a few of the shutdowns actually affected when they were paid, so it wasn't a real issue for the majority of the shutdowns.
I know that "save for the future" doesn't help now (and didn't help those Soldiers then), but it did serve as a "reality slapping you in the face" example of why they have to have a financial buffer - because there WILL be rainy days ahead, and some of them WILL become floods.
Professionally - The majority of the impacts were on the acquisition side. There were extension options on contracts that weren't able to be executed so a work stoppage occured from the supported contractor. Most logistical contracts supporting operations and the intelligence systems were either fully funded already or multi-year, so they weren't affected either.
In almost all cases, operations weren't affected to any large degree - Intelligence collection still occurred, tactical missions were still executed, and not a single bureaucratic staff meeting was dropped (the green/blue suiter might show up instead of the civilian, but they still occurred).
There was one notable case where a LFX was canceled because it depended principly upon a contractor and there wasn't money appropriated yet for the next FY, but that's the only one that sticks out.
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CPT Lawrence Cable
Everyone acts like this is the first time this has happened. It happened almost every year during Reagan (Democratic Congress), Clinton pulled his share (Republican Congress) and the Democratic Congress used the shutdown almost every year of the Trump administration that they had the majority, including the longest shutdown (34 days) over the border wall. I'll live through this one.
Just as a cynical opinion, the voting public starts to notice after a couple of weeks that their lives really haven't changed much and they start to wonder what they are getting for their money.
Just as a cynical opinion, the voting public starts to notice after a couple of weeks that their lives really haven't changed much and they start to wonder what they are getting for their money.
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MSG (Join to see)
True. The younger, more inexperienced folks will weather badly. Us "seasoned" folk, we are sadly used to it and have continued to plan for the "rainy days."
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PO1 Robert Ryan
Tired of the blame game Dems blame Reps, Reps blame Dems. Sound like 5 year old's on a school playground. Both are at fault. they continue to neglect their duties as representatives of the voters. Voters need to remember that when voting. You in the House and Senate are suppose to be educated grown adults,, Forget your party lines and party political agendas for once and do your jobs and represent your constituents.
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We bought plenty of shelf stable foods and broke out the cookbooks. We notified anyone we had a loan with that we would pay as soon as we got our pay. We do have an emergency fund and we tapped it. As soon as our pay started back we refilled the fund.
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SSG Carlos Madden
"We notified anyone we had a loan with that we would pay as soon as we got our pay." Great advice here. Just curious what kind of responses your lenders gave you so people may know what to expect.
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Lt Col Charlie Brown
SSG Carlos Madden - actually pretty positive because we are always careful not to fall behind or fail to pay on time. We did switch over to making minimum payments on a couple of things; again, if the lender is used to you paying in full, you should alert them to the change.
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This applies to everyone civilian or government employee. Always have a backup or exit plan. When you're young that is the time to set up those contingencies (otherwise one's options become Walmart Greeter).
Build a cashflow reserve fund that will see one through looking for a new job, or an extended shutdown. There is no official guideline. So I'd say 3-4 months.
As we get older in life the paths available to us become narrower. So start saving that nest egg, or start laying the ground work for a secondary career.
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From a technical/execution standpoint for investing, when one is young it might seem insurmountable to save both for retirement and for an emergency fund. However, a way to achieve both purposes would be to have a portion of one's "retirement savings" not locked up in a tax sheltered retirement plan. Then it could be used for said emergency funds. It's a little more risky, but only in the event it actually needs to be used during a down market, but then to minimize that one could just diversify that portion of their overall retirement plan to be the more liquid asset class to begin with.
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There are many here that are thinking, oh well, here we go again, and they have more than enough savings to just wait it out, and then finally get a big paycheck to make them whole again.
The world is full of uncertainties, and we are fortunate enough to not have been a world power one day, and then the next no longer be a country at all. So we never know.
A bureaucratic shutdown of the world's leading economy is low on the list of world disasters.
It's all relative
1) Government shutdown - have to have reserve cash flow to last the political infighting
2) Loss of employment by way of company collapse or fired.
2a) How easy it is to get a new job? Loss of job through no fault in a high demand economy for your high demand skill or fired for incompetence or criminal actions in a very public and noticeable manner no one will be eager to hire you?
3) Entire collapse of your region's or country's economy and currency.
4) Entire world collapse globalization of world supply chain of goods and services
On the one end simply having a reserve of US dollars on hand will solve all problems.
On the other end no amount of any currency from any country would be worth anything (least of all Bit Coin), and it's a world of barter and self preservation of what one actually owns physically and their ability to protect it with force.
Build a cashflow reserve fund that will see one through looking for a new job, or an extended shutdown. There is no official guideline. So I'd say 3-4 months.
As we get older in life the paths available to us become narrower. So start saving that nest egg, or start laying the ground work for a secondary career.
************************
From a technical/execution standpoint for investing, when one is young it might seem insurmountable to save both for retirement and for an emergency fund. However, a way to achieve both purposes would be to have a portion of one's "retirement savings" not locked up in a tax sheltered retirement plan. Then it could be used for said emergency funds. It's a little more risky, but only in the event it actually needs to be used during a down market, but then to minimize that one could just diversify that portion of their overall retirement plan to be the more liquid asset class to begin with.
******************
There are many here that are thinking, oh well, here we go again, and they have more than enough savings to just wait it out, and then finally get a big paycheck to make them whole again.
The world is full of uncertainties, and we are fortunate enough to not have been a world power one day, and then the next no longer be a country at all. So we never know.
A bureaucratic shutdown of the world's leading economy is low on the list of world disasters.
It's all relative
1) Government shutdown - have to have reserve cash flow to last the political infighting
2) Loss of employment by way of company collapse or fired.
2a) How easy it is to get a new job? Loss of job through no fault in a high demand economy for your high demand skill or fired for incompetence or criminal actions in a very public and noticeable manner no one will be eager to hire you?
3) Entire collapse of your region's or country's economy and currency.
4) Entire world collapse globalization of world supply chain of goods and services
On the one end simply having a reserve of US dollars on hand will solve all problems.
On the other end no amount of any currency from any country would be worth anything (least of all Bit Coin), and it's a world of barter and self preservation of what one actually owns physically and their ability to protect it with force.
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