US debt crisis wasn’t supposed to happen until at least 2035. Covid-19 is rapidly pushing it closer – By Nicholas Sheppard (Russia Today) / March 22 2020
The overall price tag of the fiscal stimulus package in the US could be around one trillion dollars. With record budget deficits and its national debt at $23 trillion, is the US hastening toward a fiscal reckoning?
The Trump administration wants to send direct cash payments to Americans in the coming weeks to help them cope with the economic ravages of coronavirus, part of a massive relief package developed between the White House and Capitol Hill. The overall price tag of the package is more than $1 trillion, making it one of the largest federal emergency fiscal packages ever assembled.
Whether this is a temporary downturn or a full-blown recession, two things will happen. Tax revenues will fall as people’s income drops, and Federal spending will rise. The result will be higher deficits.
The US debt is soaring, and the country has kicked the can down the road so many times on entitlement spending. It may be entering into unprecedented and dangerous territory, and hastening a reckoning it has been trying to avoid.
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