Page 26 - bon-dia-aruba-20200904

A26 u.s. news
Diabierna 4 September 2020

Budget deficit to hit record $3.3T due to virus, recession

By ANDREW TAYLOR dominated by retirement
Associated Press programs like Medicare and
WASHINGTON (AP) — Social Security, whose costs
The federal budget deficit increase automatically with
is projected to hit a record inflation and the ongoing re-
$3.3 trillion as huge govern- tirement of the Baby Boom
ment expenditures to fight generation.
the coronavirus and to prop Deficit scolds have long
up the economy have added warned that rising levels of
more than $2 trillion to the debt will serve as a drag on
federal ledger, the Congres- the economy in the coming
sional Budget Office said. years. If interest rates rise too
The spike in the deficit high, servicing the debt will
means that federal debt will put significant strain on the
exceed annual gross domestic budget.
product next year — a mile- The Federal Reserve has
stone that would put the U.S. stepped in to keep credit
where it was in the aftermath markets stable and interest
of World War II, when accu- rates low for years as debt
mulated debt exceeded the levels have risen.
size of the economy. "At a certain point, Wash-
The $3.3 trillion figure re- ington's insatiable borrow-
leased Wednesday is more ing needs will crowd out
than triple the 2019 shortfall other investments and harm
and more than double the growth," said Brian Riedl, a
levels experienced after the In this Aug. 3, 2020, file photo dark clouds and heavy rain sweep over the U.S. Capitol in Wash- senior fellow at the conser-
market meltdown and Great ington. vative Manhatten Institute.
Recession of 2008-09. Gov- Associated Press "Washington should help end
ernment spending, fueled by the pandemic and rescue the
four coronavirus response pump money into business of battling the pandemic. deal — at least at what they economy, yet must also ad-
measures, would register at subsidies, larger unemploy- The Democratic-controlled see as unfavorable terms. dress these unsustainable
$6.6 trillion, $2 trillion-plus ment benefits, $1,200 direct House passed a $3.5 tril- GOP leaders had been press- long-term deficits."
more than 2019. payments and other stimu- lion measure in May, though ing for a package in the $1 By year's end, the publicly
The recession has caused a lus steps that have helped the House Speaker Nancy Pelosi, trillion range, but party talks held national debt will total
drop in tax revenues have economy in the short term. D-Calif., says she is willing to during August have focused 98% of the U.S. gross domes-
fallen, but the changes are Most economists are untrou- cut that figure to $2.2 trillion. on a smaller package. tic product, the total output
not as dramatic as seen on bled by such huge borrowing Caseloads remain unaccept- The enormous deficit is of goods and services. That
the spending side, with indi- when the economy is in per- ably elevated, however, as the bringing the federal debt, as compares with 79% of GDP
vidual income tax collections il, and the debt was barely a virus exacts a painful, linger- measured by the size of the at the end of 2019 and 35%
running 11% behind last year. concern when a cornerstone ing toll on the economy and economy, near levels not ex- back in 2007.
Corporate tax collections are $2 trillion coronavirus relief sentiment remains high for perienced since the end of The CBO projected that the
down 34%. bill passed almost unani- a fifth virus rescue package World War II, when explo- debt would exceed 100% of
The economy shut down in mously in March. that would include money sive borrowing to finance GDP in 2021 and set a new
the spring so people could But now that lawmakers and to reopen schools, patch state the war effort caused a his- record high of 107% in 2021.
be in isolation, in a failed the White House are quarrel- budgets and continue en- toric spike. But those levels CBO, the nonpartisan eco-
national attempt to defeat ing over the size and scope hanced jobless benefits that quickly receded during the nomic and research arm of
the pandemic. That shut- of a fifth virus relief bill, Re- have kept families afloat. postwar boom — some- Congress, predicts that defi-
down led lawmakers and publicans are growing skit- Among Republicans, there thing that won't happen now, cit will total $13 trillion over
President Donald Trump to tish at the enormous costs seems to be less ardor for a since federal spending is now the coming decade.q

More than 250 arrested since Blake shooting in Wisconsin

KENOSHA, Wis. (AP) — rest figures Thursday, saying ed a curfew that had been in
More than 250 people have of the 252 people arrested, place since Aug. 24, a sign of
been arrested since the police 132 did not live in Kenosha calming tensions in the city
shooting of Jacob Blake in County. of about 100,000 midway be-
Kenosha, with more than half Rittenhouse came from his tween Milwaukee and Chi-
from outside the county that home in Antioch, Illinois, cago.
the southeastern Wiscon- about 15 miles (25 kilome- President Donald Trump vis-
sin city is in, police reported ters) from Kenosha, to join ited Kenosha on Tuesday to
Thursday. others who walked the streets thank law enforcement for
Blake, a Black man, was shot with rifles saying they were their efforts and his Demo-
seven times in the back by a there to protect businesses cratic rival Joe Biden was in
white police officer on Aug. from damage. Wisconsin on Thursday and
23, sparking three nights of Four people arrested filed met with members of Blake’s
unrest that resulted in rough- a federal civil rights lawsuit family and Kenosha commu-
ly two dozen fires and dam- Wednesday, alleging that nity leaders.
age to numerous downtown police were not arresting The police said damage to
businesses. Two nights after pro-police demonstrators city property was about $2
the shooting, prosecutors say like Rittenhouse who were million and damage to county
17-year-old Kyle Rittenhouse breaking a curfew, while tar- property was about $385,000.
fatally shot two demonstra- geting others. The Bureau of Alcohol, To-
A protester holds a flag during a Black Lives Matter march Tues- tors and wounded a third. The city’s attorney called the bacco, Firearms and Explo-
day, Sept. 1, 2020, in Kenosha, Wis. His attorney claims it was self lawsuit baseless and said it sives was investigating more
Associated Press defense. should be dismissed. than 23 fires, police said.q
Kenosha police updated ar- The city on Wednesday end-