Coronavirus: US to borrow record $3tn as spending soars
The US has stated that it plans to borrow a record $3 trillion in the second quarter of 2020 to combat the risks presented by COVID-19. Coronavirus-related rescue packages have blown up the federal spending budget as the country tries to aid businesses struggling financially due to lockdown closures. The total is more than five times the previous quarterly record, which occurred during the financial crisis of 2008.
In 2019, the US borrowed a total of $1.28 trillion, however, the US has already approved roughly $3 trillion in COVID-19 related relief this quarter. The total debt of the US government is nearing $25 trillion as a result of the pandemic. The recent spending packages passed by the government are estimated to be worth a whopping 14% of the US’s economy. On top of this, the government has extended the April 15 tax payment deadline to help US citizens, adding to the current debt.