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The Trump administration has outlined a massive $1 trillion economic relief program to ready the United States for the fallout from the coronavirus outbreak.
And that’s the good news. The worrying part: It will add significantly to America’s already large debt burden, according to analysts at ratings agency Moody’s.
Last year, the nation’s fiscal deficit grew to 4.6% of GDP, with the national debt at 79% of GDP. That’s the highest debt level since 1948. Not an optimal starting point for a shock to the economy.
Both the fiscal deficit and the overall national debt burden are expected to increase, with the fiscal deficit potentially climbing to levels not seen since 2008, at the start of the Great Recession, the Moody’s analysts said. A fiscal deficit is the shortfall in a government’s income compared with its spending …continued .
[Original Source: CNN]