Source: Ludwig von Mises Institute
by David Cardaronella
“On October 1, the federal government shut down—halting non-essential services after the failure of Republicans and Democrats to pass an appropriations bill. Even after becoming the longest government shutdown in American history, the end was nowhere in sight. It may seem that both parties would want to avoid shutdowns, especially ones lasting that long, to accomplish at least some elements of their agendas rather than waste weeks of a legislative session. However, this is not the case when certain incentives are at play, including the incentives to pressure, misrepresent, and engage in costly signaling of resolve.” (11/24/25)