Government spending in the wake of the coronavirus crisis is set to shatter all-time deficit records, Fox News reported on Tuesday.
Even accounting for inflation, the deficit accumulating currently is more than the one during the stimulus programs at the beginning of the Obama administration or even for Franklin Roosevelt’s New Deal in the midst of the Great Depression.
In addition, these calculations do not include further relief plans that are now being contemplated.
Goldman Sachs has forecast that the federal budget deficit will reach $3.6 trillion this year, more than doubling the record $1.4 trillion deficit in 2009 as President Barack Obama presided over the stimulus plan in an attempt to emerge from the recession, according to The Wall Street Journal.
Much of the current spending is viewed as necessary to provide relief for the massive economic downturn during the pandemic, but others point out that even before the coronavirus crisis, President Donald Trump was projected to preside over a nearly $1.02 trillion deficit in 2020 alone, compared to $1.03 trillion for the last two years combined of the Obama administration, according to the Congressional Budget Office.
“Over the past years, we've had huge unpaid-for tax cuts and spending increases, and what this meant was we went into this emergency situation with our debt relative to the economy twice as high as it was when we went into the recession of 2008, for instance," Committee for a Responsible Federal Budget president Maya MacGuineas told Fox News.
The federal deficit as a share of GDP this year will almost assuredly be the highest it has been since World War II, with a $3.6 trillion deficit making up some 15 percent of GDP.
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