One facet of the 'shutdown' is that they're not authorized to hand out federal money to states anymore. The states and municipalities are feeling it for every day that this stupid theatre persists.
And it is not stupid theater. It is our government NOT at work. We may temporarily recover some of our debt. In fact, if they keep this going for an extended period of time, it might actually help- a lot. Our country has become much too dependent on our government, and now that the two political parties can't get along, there may actually be room for another socially moderate, somewhat fiscally-conservative, deficit hawk, constitutionalist, semi-libertarian party with common sense to come along and bring the country together. Unfortunately, it hasn't organized yet (and no, it isn't the Libertarian party- not with its current leaders- and even with better leadership, Libertarians are incapable of getting the debt under control because they won't allow raising taxes to cover for past debt).
And tell me, when was the nation not dependent on its government? When did this era of "rugged individualism" you speak of exist? Right from its very inception, the US government has been intervening in the economy and subsidizing things that the voters deemed desirable. If the US government has grown, it is because the US has grown. You need a larger government when there are 300 million people in the country than when there are 30 million.
there may actually be room for another socially moderate, somewhat fiscally-conservative, deficit hawk, constitutionalist, semi-libertarian party
So... you want a party of magic faerie unicorns to come along and set everything aright. Er, well, good luck with that.
Edit: spelling
It's no coincidence that the most rural, most Republican states are massive consumers of federal funds (via farm subsidies and transportation subsidies, mainly) and the most urban, most Democratic states are net producers of federal funds.
A transportation subsidy might be local (maybe - interstates are national, not local), but farm subsidies end up being distributed nationally since they basically just mean that certain types of food are cheaper than they otherwise might be. So you can't count farm subsidies as "consumers of federal funds".
(It's definitely an artificial distortion of the market, but that's a different argument.)
I'm not sure how the conclusion follows from the premises. Farm subsidies do consume federal funds. Where do you think the funding for the massive pork-barrel farm bills comes from? Moreover, those dollars aren't necessarily passed on to consumers. In theory, the market for farm products is a perfectly competitive market and any subsidy to the market would result in cheaper prices for everyone. In practice, well, Cargill exists. Large agribusinesses are quite capable of taking subsidy rents and stashing them away as profit rather than using them to compete on prices if their market is more like a cartel and less like a perfectly competitive free market.
What does this have to do with a subsidy? You can do this identically without a subsidy (assuming you can do it at all). The subsidy just lowers the starting price.