The COVID pandemic has hit the global economies like a tsunami, leaving unprecedented financial disaster in its wake. The modern world (with the possible exception of the Wehrmacht Republic) has not seen anything like it.

The U.S. government has tripled its budget deficit to $3.1 trillion in an attempt to soften the economic blow for its citizens. This is a considerable increase from the fiscal year 2019 deficit of $984 billion. The deficit is expected to make up 16 percent of the GDP by the end of the fiscal year 2020.

At the same time, the federal debt will comprise 98 percent of GDP. The situation is made worse because millions of citizens are out of work. 

Thousands of businesses have closed, either temporarily or permanently, thus cutting off sources of tax revenues for the federal and state governments. At the same time, the government has had to meet the needs of so-called entitlement programs such as Medicare and Social Security. We see a gigantic chasm between U.S. government spending ($6.55 trillion) and U.S. government revenue (3.42 trillion). Four trillion dollars have gone toward relief measures for unemployed citizens and struggling businesses. There will likely be more relief spending in the near future. The U.S. annual deficit is expected to outpace the U.S. at 102 percent of GPD. 

According to Maya MacGuineas, president of the Committee for a Responsible Federal Budget, “We should be borrowing now, but once the economy recovers, our debt cannot continue to grow faster than the economy forever.” CLICK for complete article