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Repaying the National Deficit, Experts Predict Program Cuts, Higher Taxes

Posted at 9:11 AM, May 15, 2020
and last updated 2020-05-15 09:11:25-04

LANSING, Mich. — The nation's deficit is the trillions of dollars thanks in part to multiple coronavirus stimulus bills. Maya Rodriguez spoke to an economic expert who says the government is going to eventually need to get that money back, and you may not like how they do it.

Unemployment in the U.S. now reaches well above 30 Million people, historic levels, and desperation.

Marsha Miller, Headlines Salon and Spa: "We haven't gotten paycheck in 6 weeks, we haven't gotten unemployment. What are we supposed to do?"

Because of that it’s hard for many to think beyond this week let alone this year, some are, though.

“We need to have a longer-term plan.”

He says, plans like the paycheck protection program for small businesses and the 12-hundred dollar stimulus checks many workers got may seem like free money to those getting the help, but it’s not.

Jim Angel, Georgetown University Finance Professor: “This is an election year and with a closely fought battle coming our way, it's no surprise that the politicians are saying, ‘let's give everybody free money.’ the question is who's going to pay for this.”

He has an answer but you may not like it.

“When the government gives you money, it's nothing more than a temporary loan.” “don't let anybody kid you -- what the government gives you with one hand, they take with the other.”

Congress is now looking at a potential "fifth" coronavirus-related stimulus package. The latest one from the house would be worth around 3-trillion dollars, much larger than the previous bills, like the $2 trillion dollar cares act.

Eventually, all that stimulus money will need to be made up somewhere down the line.

That could come in the form of deep spending cuts on federal programs like food stamps or medicaid and the potential for raising taxes in the coming years.

Jim Angel states that “We're all going to pay for all the money that's being spent right now. it's just a question of who, what, when, where and how.”

Questions temporarily on hold, amid today’s widespread financial pain.

Additional Coronavirus information and resources:

Click here for a page with resources including a COVID-19 overview from the CDC, details on cases in Michigan, a timeline of Governor Gretchen Whitmer's orders since the outbreak, coronavirus' impact on Southeast Michigan, and links to more information from the Michigan Department of Health and Human Services, the CDC and the WHO.

View a global coronavirus tracker with data from Johns Hopkins University.

Find out how you can help businesses and restaurants struggling during the pandemic.

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Join the Rebound Mid Michigan Facebook Group.

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