As the coronavirus and the ensuing lockdown hits the American economy, Congress has passed over $2.7 trillion in the stimulus. This includes subsidized loans to businesses, increased unemployment insurance, direct payments to Americans, and funding for hospitals and state and local governments.
As a result, the federal deficit will be at least $3.7 trillion for the fiscal year 2020 — because we already were running a $1 trillion deficit before we added the coronavirus stimulus. Now, federal debt held by the public is set to exceed 100 percent of GDP, a level that was only ever seen during the peak of World War II.
As debt moves higher, the interest costs alone on the debt will begin to overwhelm other government spending. Already by 2023, interest on the debt will exceed the cost of our current defense budget. That’s a huge threat to our national security.