What were the most significant consequences of past government shutdowns on military operations, and how can we mitigate them?

SSG Carlos Madden — Fri, 29 Sep 2023 14:32:28 -0400

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?

Response by Lt Col Charlie Brown made Sep 29 at 2023 2:35 PM

Lt Col Charlie Brown — Fri, 29 Sep 2023 14:35:02 -0400

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.

Response by COL Randall C. made Sep 29 at 2023 3:33 PM

COL Randall C. — Fri, 29 Sep 2023 15:33:36 -0400

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.

Response by MSgt Steven Holt, NRP, CCEMT-P made Sep 30 at 2023 12:47 AM

MSgt Steven Holt, NRP, CCEMT-P — Sat, 30 Sep 2023 00:47:40 -0400

I can only remember one time we didn't get paid while on active duty. I think it only lasted about a week before funding was restored. As COL Randall C. and Lt Col Charlie Brown have stated, a little prior contingency planning on our part helped offset the pain of the shutdown. Additionally, we told our creditors we would catch up as soon as funding started flowing again (most were surprisingly understanding). We saved our available cash for 'must have' items such as food and utilities. Everything else was put on the back burner.

Response by MSG Private RallyPoint Member made Sep 30 at 2023 8:04 AM

MSG Private RallyPoint Member — Sat, 30 Sep 2023 08:04:45 -0400

The easiest way to mitigate, when looking at the budget, is to look at what is needed to be spent on compared to what is wanted to be spent on. But, since politicians don't want to/can't work that way....

Response by MSG Private RallyPoint Member made Sep 30 at 2023 9:20 AM

MSG Private RallyPoint Member — Sat, 30 Sep 2023 09:20:25 -0400

Edit: The most significant consequence of all these shut downs truly show how petty and inept our elected officials really are. Amd the sad part? They will keep getting reelected

Response by CPT Private RallyPoint Member made Oct 2 at 2023 12:29 PM

CPT Private RallyPoint Member — Mon, 02 Oct 2023 12:29:21 -0400

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.

Response by LTC George Morgan made Oct 29 at 2023 3:42 PM

LTC George Morgan — Sun, 29 Oct 2023 15:42:04 -0400

Could not agree more. Being able to manage you time is a requirement for managing anything else. Including money.