Over 8 Million COVID-19 Patients in the US Surpass Threshold, Third Wave Likely
Fiscal Deterioration Inevitable if Additional Stimulus Package Prepared
[Asia Economy New York=Correspondent Baek Jong-min] The United States has implemented a large-scale economic stimulus package this year following the COVID-19 pandemic, resulting in the largest federal government fiscal deficit in history.
The number of COVID-19 cases in the U.S. has exceeded 8 million and continues to rise. If additional stimulus measures are implemented, the fiscal deficit is expected to expand further.
On the 16th (local time), the U.S. Treasury Department announced that the federal government's fiscal deficit for the 2020 fiscal year (October 1, 2019 ? September 30, 2020) reached $3.132 trillion (3,589 trillion won).
This deficit is more than twice the $1.416 trillion recorded in the 2009 fiscal year, when large-scale fiscal spending was used to overcome the global financial crisis. It is also about three times the $984 billion deficit of the 2019 fiscal year.
This phenomenon occurred because revenues decreased while expenditures increased. Federal government revenues for the 2020 fiscal year were $3.42 trillion, down 1.2% from the previous year, but expenditures rose 47.3% to $6.55 trillion. The U.S. Congress passed nearly $2.8 trillion in stimulus budgets in four rounds between March and April.
The fiscal burden on the U.S. government is expected to remain in the 2021 fiscal year. The COVID-19 pandemic is still ongoing, and although the White House and the Democratic Party are in conflict over additional stimulus plans, an agreement is likely to be reached eventually.
The cumulative number of COVID-19 cases in the U.S. surpassed 8 million on this day. Johns Hopkins University reported that the cumulative confirmed cases in the U.S. reached 8,008,402, with 218,097 deaths. On the 15th alone, 60,000 new cases were reported, showing an infection spread rate comparable to the level seen in July during the second wave.
CNN pointed out, "More concerning than today's milestone of 8 million cases is the recent increase in daily new cases."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
