America will have to borrow $ 30 trillion due to Coronavirus

America will have to borrow $ 30 trillion due to Coronavirus
America will have to borrow $ 30 trillion due to Coronavirus

Corona infection has also worsened the situation in America, the world's strongest economy. After the lockdown and other expenses, these are the circumstances that he will now have to take a $ 30 trillion debt. With this, the debt on the US government has exceeded $ 250 trillion. This is more than five times the debt taken by the government in any quarter so far. Experts believe that looking at the loan amount, the situation seems to have worsened with the 2008 recession.

Let us know that in the year 2019, the US took a loan of $ 12.8 trillion. The country's health system has completely deteriorated due to a Corona infection, leading to a $ 30 trillion relief package announced for the health sector. This relief package is 14 percent of the US economy. Due to Corona, the date of tax collection had to be extended from April 15, due to which the government had no other way than to take loans. However, the US economy was already in debt before the Corona crisis and a fiscal deficit of $ 37 trillion was anticipated this year. It was supposed to be 100 percent of America's GDP.

Trump insists on opening the economy

On the other hand, Trump has insisted on reopening economic activities without putting people's lives at risk. He stressed that you can satisfy both - look at the states that are slowly opening lockdowns and also protecting people from the corona virus epidemic. He admitted that the fear of both sides was justified. The President said that some people are worried about getting sick while the rest are afraid of the possibility of going into jobs and business. Simultaneously, he tried to revive the country's economy and said that we have to open it safely, but as soon as possible.

Central Bank of America President Jerome Powell has said that this time needs to be spent to handle the economy as the lockdown snatched up 30 million jobs. According to the Washington Post last week, Trump administration officials have talked of canceling the loan from China, but Trump reportedly does not agree with the idea. Alan Blinder, a professor of economics and public policy at Princeton University, told the BBC that investors were interested in lending to the United States because of the persistently low interest rate.

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