Entire generations of Americans will live in a country with a public debt and budget deficit of incredible size.
This was reported by the Associated Press.
Referring to forecasts by the Congressional Budget Office, the media noted that the US deficit in 2020 will reach $ 3.7 trillion, helped by four financial support programs approved by Donald Trump.
Moreover, according to Speaker of the House of Representatives Nancy Pelosi, the fifth bill is already at the development stage.
The report of the Budget Office also speaks of a “crushing blow” to the US economy this quarter. For the whole year, the economy will decline by 5.6%, and the unemployment rate by summer will be 15%.
The head of the department, Philip Swagel, noted that there is “huge uncertainty” in the forecasts, given the unprecedented nature of the crisis. At the same time, he acknowledged that the situation is the most depressing since the Great Depression.
Officials also forecast an increase in government debt to 101% of GDP by the end of the year. However, financial problems arose in the United States long before the coronavirus pandemic COVID-19 pandemic. It is noted that the reason for everything is a reduction in the level of federal incomes to indicators below historical averages. At the same time, the expenditure side of the budget grew disproportionately, in particular, due to record Pentagon funding.
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The Congressional Budget Office warns that the legislature will soon have to deal with “chronic” financial problems that will fall victim to social security and medical care systems. In the next decade, the Social Security Fund may run out of reserves. And the responsibility for all this will fall on the one who will be elected president of the United States in November.