The total national debt of the United States jumped by $7 trillion during President Donald Trump’s administration. This figure is predicted to continue to increase after Trump stepped down from his position.
The reason is that President-elect Joe Biden is expected to propose an additional stimulus package of US $ 2 trillion to repair and rebuild the US economy which has been severely stressed by the corona pandemic.
The stimulus will be in addition to the US $ 900 billion aid package that the government disbursed last month.
The proposal, comprising a US $ 2,000 stimulus check for state and local aid and unemployment insurance, aims to shore up a US economic recovery that has recently looked increasingly fragile.
Increasing the US debt mountain to US $ 27 trillion is not really an easy decision. However, this is a wise step considering the scale of the problems faced and supported by low borrowing costs.
“This is not the time to tighten the belt. The economy is not in a state of austerity,” said RSM Chief Economist Joe Brusuelas, quoted by CNN Bisnis on Friday (15/1).
Last week, as many as 965,000 Americans reportedly filed for unemployment benefits for the first time. That rose sharply from the previous week which was 784 thousand people.
The filing of jobless claims has risen sharply above the worst level that occurred during The Great Recessions. A total of 140,000 jobs were ‘lost’ last December, the first drop since spring.
Wall Street did touch a record high. However, that did not happen in the real sector. The sectors that have been hit such as aviation, entertainment, hospitality and others have suffered heavy losses due to the corona virus.
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