The Two-Handed Economist

10: Why Government Shutdowns Don’t Work — and Keep Happening Anyway


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A congressional standoff over Affordable Care Act premium subsidies has triggered another government shutdown. John explains how we got here, why shutdowns aren’t effective policy tools, and what these recurring episodes reveal about budgetary and policymaking dysfunction in Washington.

Then, he turns to the Trump administration’s proposal to overhaul the H-1B visa lottery system by favoring higher-wage positions. John examines whether this could better align the temporary, nonimmigrant visa program with its statutory mission: filling high-skilled labor shortages in specialty occupations.

This conversation was recorded on Oct. 1, 2025.

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The Two-Handed EconomistBy Rice University’s Baker Institute for Public Policy