Comment: US must defuse Covid-19’s ticking time bomb of debt

The United States cannot defeat the pandemic like a military foe but it can learn from looking back at its post-war economic recovery

20th August, 2020
Comment: US must defuse Covid-19’s ticking time bomb of debt
The US Treasury should give tomorrow’s children a break by issuing 50 and 100-year bonds. Picture: Getty

The United States today not only looks ill, but dead broke. To offset the pandemic-induced “Great Cessation”, the US Federal Reserve and Congress have marshalled staggering sums of stimulus spending out of fear that the economy would otherwise plunge to 1930s soup-kitchen levels.

The 2020 federal budget deficit will be about 18 per cent of GDP, and the US debt-to-GDP ratio will soon hurdle over the 100 per cent mark. Such figures have...

Subscribe from just €1 for the first month!

Exclusive offers:

All Digital Access + eReader

Trial

€1

Unlimited Access for 1 Month

Get basic

*New subscribers only

You can cancel any time.

Annual

€200

€149 For the 1st Year

Unlimited Access for 1 Year

You can cancel any time.

Quarterly

€55

€42

90 Day Pass

You can cancel any time.

2 Yearly

€315

€248

Unlimited Access for 2 Years

You can cancel any time.

Team Pass

Get a Business Account for you and your team

Share this post

Related Stories

Private rental sector remains strong despite Covid-19

How the programme for government will shape housing

Insight Niall Byrne 5 months ago

Comment: The recovery will be more U than V-shaped

Insight Larry Hatheway 6 months ago

Comment: Ireland has dazzling opportunity to lead on climate change

Insight Deirdre Lillis 6 months ago