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Rumors of a federal government shutdown are once again swirling. Absent a deal, non-essential agencies will have to suspend operations until legislators put together a spending deal.

Americans have another front row seat to the public relations battle between Republicans and Democrats to see which party is most to blame for the impasse.

Legislators on both sides of the aisle want citizens to know a shutdown is bad and the other party is responsible. They don’t want people paying attention to just how little the difference is between the Republican and Democratic spending proposals.

This difference is summed up in the chart below:
 

The Democrats would be happy to spend $3 trillion more than the government collects in taxes. Republicans are pushing for a $2 trillion budget deficit.

Just a few years back, Americans were witness to budget drama which included deficits a mere quarter of these amounts.

Republican legislators are proudly standing behind an offer which would extend the current Biden-era funding levels for 7 weeks. They aren’t embarrassed at all to be supporting spending levels they pretended to oppose just a couple years ago.

Democrats insist that certain healthcare spending increases which were tamped down via the “One Big Beautiful Bill” must be restored.

Despite the looming October 1 deadline, there is no budget resolution or appropriations package currently up for debate or vote.

The Trump administration is threatening to permanently layoff some non-essential employees if there is a shutdown.

Democrats are howling about those threats and promising to stand firm.

Voters on both sides are expected to be proud of the principled stand their respective party leaders are making.

For fans of limited government and sound money, here’s a spoiler alert: Republicans in Congress aren’t planning a meaningful change in spending or deficits, and, of course, neither are Democrats.

In the end, and despite the drama, citizens are going to get stuck with a deal in which government spending rises and the national debt ratchets trillions higher.

The Federal Reserve Bank will enable the whole thing with artificially lower interest rates. It might even have to step in again as the buyer of last resort for the oceans of new debt the Treasury will be issuing.

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