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Home Illinois News

Solving the Debt After Coronavirus

Illinois Review by Illinois Review
April 6, 2020
in Illinois News
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UnnamedJust as the government adjusted to a post-World War II economy, the government must design a phase two fiscal plan for a post-coronavirus pandemic economy.

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The Trump administration and Congress recently passed the Coronavirus Aid, Relief, and Economic Security Act. Under the terms of the $2 trillion rescue package, the federal government will make direct payments to households, businesses, and state and local governments.

President Donald Trump proposes that the next phase of economic relief from the pandemic should include an additional $2 trillion of debt-financed infrastructure spending, as well as allocating $500 billion from the Treasury to the Federal Reserve to bolster credit markets.

The cost of this multi-trillion-dollar rescue package will drive up the federal budget’s already substantial trillion-dollar deficit, so it’s safe to conclude that the magnitude of this fiscal stimulus far surpasses the legislation enacted in response to the 2008 financial crisis.

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