WEBVTT - The U.S. Govt shutdown, explained

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<v Speaker 1>Already, and this is the Daily This is the Daily OS. Oh,

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<v Speaker 1>now it makes sense.

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<v Speaker 2>Good morning, and welcome to the Daily OS. It's Friday,

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<v Speaker 2>the third of October.

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<v Speaker 1>I'm Sam Kazowski, I'm Billy fit Simon's wait before we

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<v Speaker 1>get into the deep dive. Yeah, it's a big day,

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<v Speaker 1>third of October.

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<v Speaker 2>Third of October. It's two days before my mum's sixtieth birthday.

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<v Speaker 1>And Taylor Swift is also dropping an album today. And

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<v Speaker 1>it's the Mean Girl's Meme Day, which.

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<v Speaker 2>Means that most of tda's office will not do any

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<v Speaker 2>work today.

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<v Speaker 1>No, wait, do you know what I'm saying when I

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<v Speaker 1>say the Mean Girl's Meme.

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<v Speaker 2>Day that it's a date mentioned in the diary. And yeah, girls,

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<v Speaker 2>pretty much, I'm up with it.

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<v Speaker 1>Big day, big day for the girls.

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<v Speaker 2>Big day. And I'm sorry to kind of change the

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<v Speaker 2>tone of this conversation, but we're talking about US politics.

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<v Speaker 2>It's a big day for US politics, not as exciting

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<v Speaker 2>as a new Taylor Swift album. And that's because the

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<v Speaker 2>US government is shut down, and it's shut down Congress

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<v Speaker 2>failed to pass funding legislation. It's the twenty first shutdown

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<v Speaker 2>since nineteen seventy seven, and it has triggered the indefinite

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<v Speaker 2>pause of most federal services, putting tens of thousands of

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<v Speaker 2>federal employees out of work. On today's podcast, we're not

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<v Speaker 2>going to talk about the new Taylor Swift album. Instead,

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<v Speaker 2>we're going to break down what a shutdown actually means,

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<v Speaker 2>how an entire government can just stop, and why this

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<v Speaker 2>one might be different from past shutdowns. Before we jump

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<v Speaker 2>into all of that, here's a message from our sponsor.

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<v Speaker 1>Sam. When I first saw this story, my first thought

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<v Speaker 1>was not again, because I feel like this happens every

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<v Speaker 1>single year. But then I just realized that there's kind

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<v Speaker 1>of talk about it happening, or there's a threat of

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<v Speaker 1>it happening exactly, but this time it's actually come to fruition.

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<v Speaker 1>We're here, we are here. My understanding is that it

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<v Speaker 1>all centers around the budget. Do you want to explain

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<v Speaker 1>exactly what this process is?

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<v Speaker 2>Sure, So, the US government operates on a fiscal year

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<v Speaker 2>that runs from the first of October to the thirtieth

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<v Speaker 2>of September the following year, and towards the end of

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<v Speaker 2>each fiscal year, Congress needs to pass legislation to fund

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<v Speaker 2>federal operations for the next year. So a tick of

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<v Speaker 2>approval on the money that federal operations such as the military,

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<v Speaker 2>but also the National Park Service or a lot of

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<v Speaker 2>the health authorities in the country need to function. And

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<v Speaker 2>all of this starts in February, and that's when the

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<v Speaker 2>President usually proposes the budget and then he sends it

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<v Speaker 2>to Congress to review it. Just like in Australia, the

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<v Speaker 2>budget is a political reflection of what the priorities are

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<v Speaker 2>of that government or the president and almost always the

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<v Speaker 2>two sides, so the Republicans and the Democrats, they're going

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<v Speaker 2>to disagree on some measures and that's when they enter

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<v Speaker 2>a period of negotiation. And that period between February and September,

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<v Speaker 2>so you know, a good chunk fifty percent of the

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<v Speaker 2>time spent is on making sure the next year's budget

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<v Speaker 2>is approved. But if they can't reach an agreement by

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<v Speaker 2>the thirtieth of September, they've got two options really ahead

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<v Speaker 2>of them. They can either pass what's called a continuing

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<v Speaker 2>resolution or a CR. It's basically a band aid. It's

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<v Speaker 2>basically saying let's give enough funding for like thirty or

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<v Speaker 2>sixty days so that we can keep negotiating. Or they

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<v Speaker 2>can shut the government down.

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<v Speaker 1>Right and so this time, they shut the government down

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<v Speaker 1>because they couldn't agree exactly.

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<v Speaker 2>They couldn't not only could they not agree on the

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<v Speaker 2>federal budget, they couldn't agree on the terms of that

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<v Speaker 2>continuing resolution either, right, And what happens then is the

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<v Speaker 2>government shuts down literally at midnight on the first of October.

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<v Speaker 2>They don't have money that's been approved by Congress to

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<v Speaker 2>operate and they have to see non essential operations. That's

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<v Speaker 2>a shutdown. And that's where we are right now.

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<v Speaker 1>You've mentioned Congress a few times. In Australia, we don't

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<v Speaker 1>have Congress, So do you want to just explain exactly

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<v Speaker 1>what that is, because it's critical to understanding how this

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<v Speaker 1>has happened.

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<v Speaker 2>In many ways, it is similar to the Australian model.

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<v Speaker 2>It's different in terms of the leader of the country

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<v Speaker 2>being the president is not in Congress, whereas here Anthony

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<v Speaker 2>Alberanezi as a Prime Minister, would be the leader of

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<v Speaker 2>the House of Reps. But Congress has two chambers just

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<v Speaker 2>like us. They've got the House of Representatives and the Senate.

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<v Speaker 2>In the House of Representatives, a party needs two hundred

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<v Speaker 2>and eighteen votes to pass a bill before it can

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<v Speaker 2>be sent up to the Senate right now, the Republicans

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<v Speaker 2>have a majority by one. They've got two hundred and

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<v Speaker 2>nineteen seats, the Democrats have two hundred and thirteen, and

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<v Speaker 2>there's three spots that are vacant. And in the Senate,

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<v Speaker 2>most bills need fifty one votes to pass. It's one

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<v Speaker 2>hundred seats in the Senate, but spending bills like a

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<v Speaker 2>budget needs sixty votes. Now, the problem is that the

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<v Speaker 2>Republicans have fifty three seats there, so they've got enough

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<v Speaker 2>to pass another bill, but when it comes to budgetary bills,

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<v Speaker 2>they don't have enough. They actually need the support of

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<v Speaker 2>seven Democrats. The Democrats have forty seven seats, then there's

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<v Speaker 2>two independents, and that's where things have fallen down.

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<v Speaker 1>Got it. So the budget was able to pass the

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<v Speaker 1>House because they passed the House control the House exactly,

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<v Speaker 1>But then it wasn't able to pass the Senate because

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<v Speaker 1>even though they have a majority there, they don't have

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<v Speaker 1>enough of a majority to pass.

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<v Speaker 2>A budget exactly. And that's where that negotiation point I

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<v Speaker 2>made earlier really came into play. Is the Democrats basically said,

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<v Speaker 2>we will support the passage of this budget through the

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<v Speaker 2>Senate if you give us AB and C. The Republicans

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<v Speaker 2>couldn't meet those demands, and that's where things fell apart.

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<v Speaker 1>And so what happens during a shutdown, like do people

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<v Speaker 1>just stop working?

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<v Speaker 2>Well, a chunk of the federal government stops operating. About

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<v Speaker 2>twenty five percent of the federal government completely stops. I

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<v Speaker 2>think the National Park Service is a really interesting one.

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<v Speaker 2>So these are the employees who would sit at a

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<v Speaker 2>boomgate of cars looking to enter a national park, or

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<v Speaker 2>they'd be working on sustainability measures in the park safety

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<v Speaker 2>that's not seen as an essential service, So those people

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<v Speaker 2>are immediately furloughed or cush essentially. The other seventy five

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<v Speaker 2>percent continues, and we're talking there about things like air

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<v Speaker 2>traffic control security and airport police ambulances, that kind of stuff.

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<v Speaker 2>They continue, but employees don't get paid.

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<v Speaker 1>So they're required to rock up to work, but they

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<v Speaker 1>know that they might not be paid for that for

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<v Speaker 1>a while until this budget.

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<v Speaker 2>Goes through exactly. So they're back paid when the budget

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<v Speaker 2>does eventually go through. They're paid for all of their time.

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<v Speaker 2>But the twenty five percent that is kind of dismissed

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<v Speaker 2>on the spot. We're talking there about four million federal employees.

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<v Speaker 1>That's a lot. So four million people who no longer

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<v Speaker 1>work and suddenly wake up knowing that they don't have

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<v Speaker 1>a paycheck coming.

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<v Speaker 2>Yeah, and it's a bit more complicated than that in

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<v Speaker 2>terms of most of these shutdowns are resolved in a

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<v Speaker 2>couple of days, and these people are immediately rehired and

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<v Speaker 2>there's a gap where they weren't covered. But then it's

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<v Speaker 2>kind of business as usual. But it can get really messy.

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<v Speaker 2>I mean there are non essential federal employees who may

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<v Speaker 2>suddenly have to use food services, or there's stories about

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<v Speaker 2>kids being withdrawn from school because parents who are non

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<v Speaker 2>essential employees can't afford petrol to get in their car.

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<v Speaker 2>Then there's also stories of like military personnel who are

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<v Speaker 2>told to continue working but may go a full month

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<v Speaker 2>without a paycheck.

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<v Speaker 1>Okay, so I understand what happens during the shutdown. One

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<v Speaker 1>thing that I think we've kind of skimmed over is

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<v Speaker 1>what actually led to this and what in particular, the

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<v Speaker 1>Democrats and the Republicans aren't agreeing on that has meant

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<v Speaker 1>that this shutdown has happened.

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<v Speaker 2>So the Republican controlled House, they passed that continuing resolution.

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<v Speaker 2>I spoke about the band Aid they passed that in

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<v Speaker 2>September that would have given everybody funding until the end

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<v Speaker 2>of November, and we got some clues in that as

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<v Speaker 2>to what the key issues were. And essentially we're talking

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<v Speaker 2>here about probably two primary issues. One is the bucket

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<v Speaker 2>of healthcare, the very complex bucket of healthcare. In the UA,

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<v Speaker 2>Democrats essentially wanted temporary healthcare subsidies introduced under former President

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<v Speaker 2>Barack Obama. You might have heard the term Obamacare. So

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<v Speaker 2>those were temporary subsidies that are about to expire, and

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<v Speaker 2>Democrats wanted to make them permanent subsidies. Republicans opposed this.

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<v Speaker 2>They said that this would really ramp up the cost

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<v Speaker 2>of the American healthcare system. Who pays for the system

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<v Speaker 2>its taxpayers. That would put pressure on cost of living.

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<v Speaker 2>Then there's also some proposed cuts by the Republicans to

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<v Speaker 2>particular health agencies. The new head of America's health system,

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<v Speaker 2>RFK Junior, has some controversial policies on things like vaccines

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<v Speaker 2>or the treatment of some infectious diseases. Then a third

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<v Speaker 2>problem in healthcare is the availability of healthcare to undocumented migrants.

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<v Speaker 2>Then you have another topic of presidential authority. And this

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<v Speaker 2>won't surprise people listening, but Democrats wanted to restrict the

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<v Speaker 2>president's ability to withhold funding for programs that had already

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<v Speaker 2>been approved by Congress. So an example would be an

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<v Speaker 2>eighteen billion dollar infrastructure program for New York that would

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<v Speaker 2>have upgraded trains around the city of New York City

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<v Speaker 2>that passed Congress, and then President Trump used his powers

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<v Speaker 2>to defund that program. So Democrats wanted to remove that

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<v Speaker 2>power to do that to programs that have been approved.

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<v Speaker 2>Republicans said that we need to look to the Supreme

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<v Speaker 2>Court ruling. The Supreme Court recently ruled that that's okay

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<v Speaker 2>to do and that executive control, according to the Constitution,

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<v Speaker 2>needs to stay with the president.

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<v Speaker 1>What I think is interesting is, you know, America is

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<v Speaker 1>so divided politically, and the fact that they do need

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<v Speaker 1>to negotiate on these points that are so fraught between

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<v Speaker 1>the two parties, it's almost surprising to me that this

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<v Speaker 1>doesn't happen more.

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<v Speaker 2>Well, I feel like there's so much money in that

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<v Speaker 2>budget that both sides will often find ways to make

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<v Speaker 2>each other happy. Yes, and to you know, you give

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<v Speaker 2>a little bit of leniency over here in healthcare, will

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<v Speaker 2>make sure that there's more in defense of the southern

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<v Speaker 2>bar and there's this big kind of to and fro

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<v Speaker 2>process because both parties know that eventually the other one

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<v Speaker 2>will be in power, and so there's also a bit

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<v Speaker 2>of kind of a favor system and the negotiation system

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<v Speaker 2>of some of these politicians have been working together for

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<v Speaker 2>thirty forty years, so they have the trust to be

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<v Speaker 2>able to build a negotiated budget together.

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<v Speaker 1>What have passed shutdowns been like, because, like you said

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<v Speaker 1>at the top, this isn't the first time it's happened.

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<v Speaker 2>Yeah, well, I was reading. I think every president maybe

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<v Speaker 2>except one since the seventies has had a shutdown. Some

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<v Speaker 2>are a couple of days. The longest one in history

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<v Speaker 2>was thirty five days, and that was in twenty eighteen,

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<v Speaker 2>and in that scenario, three hundred thousand federal workers were furloughed,

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<v Speaker 2>so they were dismissed, and they were totally unpaid in

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<v Speaker 2>that period. Usually a federal government shutdown is seen as

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<v Speaker 2>this really negative thing by both Republicans and Democrats, and

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<v Speaker 2>so it's normally resolved pretty quickly. Neither party want to

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<v Speaker 2>answer to their constituents of why am I out of work?

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<v Speaker 2>Why can't I access public resources? And so thirty five

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<v Speaker 2>days was pretty long, and I think the second longest

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<v Speaker 2>was in the twenties, so that was a rarity in itself.

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<v Speaker 2>Analysts say that we could be headed towards the thirty

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<v Speaker 2>five day mark and even beyond.

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<v Speaker 1>Really, yeah, so we think that this is going to

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<v Speaker 1>go on for a long time.

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<v Speaker 2>Yeah. And the phrase that a lot of US media

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<v Speaker 2>outlets are using is that this shutdown feels different. Well,

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<v Speaker 2>the reason really is the way that the Trump administration

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<v Speaker 2>is talking about the shutdown. The president sets the tone,

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<v Speaker 2>especially for the Republicans who control the House and control

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<v Speaker 2>the Senate. He's positioning it as a way to actually

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<v Speaker 2>permanently close some of the federal agencies that his administration

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<v Speaker 2>has been talking about wanting to close for a long time.

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<v Speaker 2>And so think about it, like these people are dismissed

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<v Speaker 2>because there's no more funding for the federal government for

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<v Speaker 2>say two weeks. It's an opportunity for the Trump administration

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<v Speaker 2>to actually permanently take away that institution.

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<v Speaker 1>And this is part of we know that US President

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<v Speaker 1>Donald Trump is wanting to cut spending from the budget,

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<v Speaker 1>so he's kind of seeing this as a way to

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<v Speaker 1>do that exactly.

0:12:15.960 --> 0:12:18.440
<v Speaker 2>And that's not a new idea. There was a similar

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<v Speaker 2>threat to shut down the government back in March with

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<v Speaker 2>the previous year's budget, and Chuck Schumer, who's one of

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<v Speaker 2>the senior members of the Democrats, he actually decided to

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<v Speaker 2>vote with the Republicans to avoid what he said would

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<v Speaker 2>be a situation where Trump could permanently dismantle some of

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<v Speaker 2>these agencies. Now six months on, Schumer has flipped his vote,

0:12:38.800 --> 0:12:41.160
<v Speaker 2>and he's actually said, I know that I said that

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<v Speaker 2>back in March. Now that we're here in October, the

0:12:44.440 --> 0:12:47.440
<v Speaker 2>threat to our democracy is too real. We need to

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<v Speaker 2>take stronger action than a negotiated outcome.

0:12:50.600 --> 0:12:52.360
<v Speaker 1>It's such a complex situation.

0:12:52.520 --> 0:12:54.960
<v Speaker 2>But yeah, sorry, I thought that was a complex one

0:12:54.920 --> 0:12:59.440
<v Speaker 2>of that definitely ask questions in the comments or DMUs

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<v Speaker 2>as that's a take in.

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<v Speaker 1>I feel like every time I said this is my understanding,

0:13:03.120 --> 0:13:05.880
<v Speaker 1>you're like, yeah, kind of, that's a lot more complex

0:13:05.920 --> 0:13:06.280
<v Speaker 1>than that.

0:13:06.440 --> 0:13:10.000
<v Speaker 2>Well, people, you know, people have designed over two hundred

0:13:10.000 --> 0:13:14.280
<v Speaker 2>and fifty years a US system that is really really complex.

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<v Speaker 2>Whichever way you can.

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<v Speaker 1>Well, thank you so much for explaining it to us.

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<v Speaker 1>Thanks Billy, and thank you so much for listening to

0:13:19.960 --> 0:13:22.240
<v Speaker 1>this episode of The Daily OS. We hope that you

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<v Speaker 1>have a great October third. There is much to celebrate today.

0:13:25.600 --> 0:13:28.200
<v Speaker 1>We'll be back this afternoon with your evening headlines, but

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<v Speaker 1>until then, have a great day. My name is Lily

0:13:34.640 --> 0:13:38.040
<v Speaker 1>Maddon and I'm a proud Arunda Bungelung Kalkottin woman from

0:13:38.080 --> 0:13:42.440
<v Speaker 1>Gadigol Country. The Daily oz acknowledges that this podcast is

0:13:42.480 --> 0:13:44.959
<v Speaker 1>recorded on the lands of the Gadighl people and pays

0:13:44.960 --> 0:13:48.200
<v Speaker 1>respect to all Aboriginal and Torres Strait Island and nations.

0:13:48.520 --> 0:13:51.440
<v Speaker 1>We pay our respects to the first peoples of these countries,

0:13:51.559 --> 0:13:52.760
<v Speaker 1>both past and present,