In March and April of 2020, four major federal laws were enacted in response to the 2020 coronavirus pandemic. Those laws, which contained a wide array of conventional and unconventional fiscal policies, will add $2.3 trillion to the deficit in fiscal year 2020 and $0.6 trillion in 2021, according to the Congressional Budget Office’s estimates.
By providing financial support to households, businesses, and state and local governments, the legislation will offset part of the deterioration in economic conditions brought about by the pandemic. CBO estimates that the legislation will boost the level of real (inflation-adjusted) gross domestic product (GDP) by 4.7 percent in 2020 and 3.1 percent in 2021. From fiscal year 2020 through 2023, for every dollar that it adds to the deficit, the legislation is projected to increase GDP by about 59 cents. In the longer term, the legislation will reduce the level of real GDP, CBO estimates. All of those estimates are subject to considerable uncertainty.
Chosen excerpts by Job Market Monitor. Read the whole story @ The Effects of Pandemic-Related Legislation on Output | Congressional Budget Office
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