Congressional Compensation During Government Stoppage
During a recent 43-day federal government cessation, the longest in American history, members of the U.S. Congress continued to receive their regular salaries, a situation that contrasted sharply with the financial difficulties experienced by many federal workers and the public. While food assistance and travel services were significantly impacted, the 100 senators and 435 representatives maintained their income, protected by the U.S. Constitution. The standard annual salary of $174,000 for most members translates to approximately $476.71 per day, accumulating to over $20,000 during the extended closure. House Speaker Mike Johnson, with a higher annual salary of $223,500, earned around $26,330.
Interestingly, some lawmakers, including Senate Minority Leader Chuck Schumer and roughly 55 other senators, opted not to accept their salaries during this period, with some even pledging to donate their earnings to charitable organizations. Public sentiment during the shutdown, as indicated by a Morning Consult poll, largely placed responsibility on the Republican Party, with 46% of voters holding them accountable compared to 38% blaming Democrats. This perception was reflected in a decline in former President Donald Trump's approval rating and a decrease in favorability for congressional Republicans, while congressional Democrats saw a slight increase in approval. The poll highlighted that issues like flight cancellations and SNAP funding, directly affected by the shutdown, were top concerns for voters.
In the aftermath of the government's reopening, the stock market, represented by the SPDR S&P 500 ETF Trust, initially experienced a slight downturn. However, historical data suggests that previous lengthy shutdowns were followed by periods of strong market recovery. For instance, the shutdown from late 2018 to early 2019 preceded one of the best years for investors in over a decade, with the S&P 500 ETF seeing a significant rebound. While the current funding bill only extends through January 30, potentially setting the stage for future uncertainty, the long-term resilience of the market in the face of such political disruptions remains a notable trend.
The resilience shown by the American economy and its people in the face of political challenges is a testament to the nation's enduring strength and adaptability. Even as government processes falter, the spirit of innovation and perseverance continues to drive progress, demonstrating that unity and a forward-looking perspective can overcome temporary setbacks.