Email
Linkedin
Facebook
Twitter
Copy Link
The pandemic added to our massive debt
June 08, 2021 | Chart
The COVID-19 pandemic decimated international public health, but it also ravaged the global economy and labor markets. Many Americans were able to withstand the financial impacts incurred by the pandemic thanks to increased federal spending and tax cuts to help the economy rebound, but the assistance comes at a hefty cost. A significant decline in federal revenues coupled with substantial federal spending has generated about $6.5 trillion in additional public debt.
While it is still too soon to measure the full economic impact of COVID-19, it is not too soon to formulate a plan to address the consequences of the massive escalation in public debt. Current projections from the Congressional Budget Office predict the public debt will rise to 202 percent of GDP in 2051, 20 percentage points higher than figures calculated just before the pandemic’s start. In an immensely competitive global economy, the mounting US debt burden could spell disaster for taxpayers, private investors, and business leaders if left unaddressed.
