Divided we fail, so Trump, Pence, Mitch McConnel, Chuck Grassley, Schumer, Sanders, (list more Democrats who divide Americans - too tribal) . . . .
How to Worry About the Deficit: (1) Don't; (2) Wait a Few Years; (3) Then Worry About Healthcare Costs
Alan S. Blinder January 25, 2013
https://amp.theatlantic.com/amp/article/272521/
The government budget deficit is about to explode to fight the coronavirus
Published Sun, Mar 22 2020 2:25 PM EDT - Updated Mon, Mar 23 2020 7:51 AM EDT
By Jeff Cox
EXPLODE!
The absolute ONLY way to rescue our economy any time soon is by everyone working together. PERIOD!
"KEY POINTS
- Congress and the White House are working on an economic stimulus bill approaching $2 trillion.
- The spending comes with the government already expected to run a budget deficit exceeding $1 trillion this year.
- Economist Paul McCulley said aggressive spending to combat the coronavirus' economic impact will be "a bridge to the other side of an act of God."
- In addition to the spending, a Treasury backstop of Federal Reserve programs could provide another $4 trillion in liquidity.
- Administration officials say the spending will pave the way for greater growth later in the year."
There is incredible uncertainty in the future, BUT we have businesses in Ameirca that can compete and survive.
"Hopes for growth
Of course, the numbers are all fungible, and Mnuchin told Fox News that he expects short-term damage to the economy followed by "gigantic" growth in the fourth quarter of 2020. The administration's efforts, though, are more geared to what's happening now.
"As fiscal policy loosens, the deficit does increase quite substantially in the near term," said Jeremy Lawson, chief economist at Aberdeen Standard Investments. "If the government isn't filling that gap in that period where the private sector is retrenching, it effectively doubles the size of the economic shock that is taking place."
In fact, Lawson said monetary and fiscal authorities probably will have to step up their efforts. He particularly said the Fed needs to get more aggressive because while "it might feel like they're throwing the kitchen sink at this, at the moment you might say they're only throwing the tap."
So as the shock of trillion-dollar deficits will now give way to the shock of multitrillion dollar deficits, there is little else for authorities to do except keep pumping.
"By using your balance sheet during the bad times, what you can actually do is help the long-term health of the budget by assuring there is an economy that can return when the private sector is able to start spending again. Then the fiscal authority can unwind that stimulus, the temporary parts of it," Lawson said. "Yes, it looks like it's blowing a hole in the budget, but that's probably necessary from keeping a bigger one from being blown open later on.""
