Shutdown Mode: Government Gridlock Lessons for Leaders

How leaders can keep teams moving when fear and scarcity take over.

As the longest government shutdown in U.S. history finally shows signs of ending, the toll has been significant. Nearly a month and a half without pay has left roughly 1.4 million federal employees scrambling to cover essentials. While lawmakers debate the final details, many families are still facing missed payments, mounting bills, and uncertainty about when normal operations will resume.

Across the country, federal workers have stepped up to help each other—turning to social media to share resources and advice—everything from how to apply for emergency assistance to banks offering short-term interest-free loans to help cover bills. Others have started local threads to offer childcare swaps to save money on daycare costs. The collective action is a reminder that in the absence of functional systems, community often fills the gap.

It's a sobering moment, but the lessons extend beyond the government. When any organization faces systemic breakdown—budget freezes, furloughs, mission stalls, or major team disconnect—the same human dynamics emerge. The question for leaders is this: What can this shutdown teach us about leading through crisis, fear, and division?

Scarcity Breeds Zero-Sum Thinking

In moments of uncertainty, people often adopt a zero-sum mindset, the belief that one person’s gain must come at another’s loss. Research shows this cognitive bias narrows focus, erodes empathy, and discourages cooperation (Fearon & Götz, 2024).

Inside organizations, zero-sum thinking sounds like: “If their project gets funding, mine won’t.” It leads to turf wars, hoarding information, and playing not to lose instead of playing to win.

Leaders can counter this by reinforcing a long-term view. Economic and organizational downturns are cyclical; most recover. Communicating that perspective helps employees zoom out from short-term fears and reengage with a shared purpose.

Fear Freezes Progress

Another instinctive reaction to a crisis is to maintain the status quo. This is part of our psychology: When faced with a threat, we fight, flee, or freeze. At work, "freeze" often looks like disengagement. People keep their heads down and avoid making any waves. But when everyone withdraws, progress stalls.

Leaders can create movement by reframing problems as shared challenges and redirecting focus toward what’s still within the team’s control. Psychological safety, an environment where people can speak up, experiment, and fail without fear, becomes the antidote to paralysis (Almahri & Abd Wahab, 2023).

Practical actions include acknowledging the stress openly, listening before reacting, and modeling transparency about your own uncertainties. When leaders show empathy and steadiness, it gives others permission to reengage.

Community Is the Antidote to Gridlock

At the start of the shutdown, people began self-organizing to provide social and emotional support. This is known as bottom-up leadership, and the same thing can happen in workplaces. When a system stalls, the real work continues through connection and collective care.

But rather than having employees join together via shared hardship or "trauma bonding," a leader can help fill the gap through intentional community building. This might mean pairing peers for collaborative projects, connecting staff to HR for wellness resources, or simply creating opportunities for people to share challenges and solutions.

Leaders should prioritize humanity over hierarchy. When leaders show up with empathy, transparency, and openness, they signal that people come first. In return, employees are more likely to stay engaged, supportive, and resilient through the uncertainty.

Leadership Lessons

There’s an old saying, “An ounce of prevention is worth a pound of cure.” Though leaders can't always prevent crises, they can prevent paralysis.

To lead through scarcity and uncertainty:

• Spot zero-sum thinking early. When you hear “either/or” language, reframe it as “both/and.”
• Keep the long view in focus. Fear narrows perspective; leadership widens it.
• Model empathy and openness. Transparency builds trust, even in turbulence.
• Build micro-communities. Encourage teams to connect, share resources, and support one another.

Leaders who lead with empathy and foster a culture of care reduce the risk of zero-sum competition. They make it safe for people to take risks, share ideas, and collaborate—conditions that help teams move forward even when external systems stall.

Whether it’s Congress or a corporate boardroom, progress stops when people dig in instead of reaching out. The best leaders don't wait for systems to restart. They create momentum by restoring connection.

Written by: Ashley C. Jordan, Ph.D., a professor of psychology at the University of Arizona and an author, consultant, and international speaker, for Psychology Today.