(AmericanProsperity.com) – On Monday, the Treasury Department said it’s going to borrow a record-breaking amount of money. During the second quarter, the government will borrow $3 trillion to pay for direct payments, business assistance, and other obligations during the COVID-19 pandemic. That’s more than double the amount the government borrowed in 2019 and it doesn’t account for any new spending Congress may approve in upcoming relief legislation.
— USA Economist (@economist_macro) May 4, 2020
The Treasury Department said it expects to borrow another $677 billion between July and September. That’s more than the $477 billion they borrowed in the first quarter of 2020. For comparison, the amount the government is currently borrowing to pay for the pandemic is five times greater than what they borrowed at the height of the Great Recession, which took place from 2008 to 2009.
Since the middle of March, over 30 million Americans have filed for unemployment. State-induced economic shutdowns forced workers home to combat COVID-19. Despite all the borrowing to keep the economy afloat, economists say the economy could take up to 10 years to recover, and it may never be the same again.
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