As of 9/11/2020, it has been announced that the United States deficit surpassed $3 trillion through August. According to official Treasury data, the deficit is projected to continue to grow to 3.3 trillion by the end of the fiscal year this month. The projection, which confirm estimates from the Congressional Budget Office, show that the Unites States in on pace to see the largest deficit in history. The deficit for the fiscal year is over double the $1.4 trillion record deficit during the financial crisis. Data shows that government spending has surpassed $6 trillion this year, largely due to emergency relief efforts to help the economy during the pandemic. The Congressional Budget Office estimates that the total debt will exceed the size of the entire economy. Economists warn that huge debt can hurt the economy by slowing growth, raising interest rates, and making it harder for the government to spend on priorities.
Should the government be concerned with the increasing deficit, or should it be a secondary problem during the pandemic?
https://thehill.com/policy/finance/516057-us-deficit-officially-hits-3-trillion-amid-pandemic
I believe it should be a secondary problem. AT LEAST for now... During a global pandemic, our number one priority should be keep American business afloat.
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ReplyDeleteI think after what we have learned in class, there should be a constant concern about the government deficit, however it is good to have some deficit in the long run. However, I agree that it is not a top priority right now during the pandemic because we must focus on health and the economy. The deficit should still be in the back of our heads as we make decisions to help the economy.
ReplyDeleteI think the government should not be concerned with the deficit they should just focus on getting GDP back up. If they keep GDP above the deficit we can pay it off later when times are good
ReplyDeleteI think that the government should be concerned with the deficit but at the same time you have to recognize that they borrow trillions of dollars a year at very low interest rates on global markets. No one really knows what the “debt limit” is per say but if interest rates remain low the government can handle a heavier debt load. I do think that politicians may be more reluctant to borrow more knowing that they have already borrowed a great deal, but keeping the economy afloat should be the priority to the debt.
ReplyDeleteIn the short run we do not need to worry so much about the deficit. There are bigger things to focus on at the moment. We need to try and fix the issues we have right now so that we are able to do fix the bigger issue in the long run. We need to go back to the days were we spend money to fix a recession, and pay it back when we are in good times. Interest rates are low at the moment, so it is not very hard to pay back the debt, but we should plan accordingly to pay off the debt over time.
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