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        <title><![CDATA[Feds expect coronavirus to drain trillions from US economy]]></title>
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        <link>https://usagag.com/2020/06/02/feds-expect-coronavirus-to-drain-trillions-from-us-economy/</link>
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            <media:title type="html">Feds expect coronavirus to drain trillions from US economy</media:title>
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        <content:encoded><![CDATA[<p>The feds expect the coronavirus crisis to drain trillions of dollars from the US economy over the next decade, in the latest sign of the pandemic&#8217;s economic devastation.</p><p>The crisis will lead to a $15.7 trillion reduction in the nation&#8217;s gross domestic product — the value of all goods and services produced here — from this year to 2030 without adjusting for inflation, the <strong>Congressional Budget Office said</strong> Monday.</p><p>The nonpartisan agency expects a plunge of $7.9 trillion when adjusting for inflation, or 3 percent of the cumulative real GDP the office projected for that 10-year period in January.</p><p>The CBO said social-distancing measures aimed at controlling the deadly virus and the resulting business closures will likely reduce consumer spending, while a drop in energy prices is expected to curtail US investment in the industry.</p><p>Legislation aimed at blunting the economic impact of the virus will &#8220;partially mitigate the deterioration in economic conditions,&#8221; CBO director Phillip L. Swagel said. He added that the projections are uncertain because it&#8217;s unclear how the pandemic will develop going into next year and how it will affect the economy.</p><p>&#8220;Additionally, if future federal policies differ from those underlying CBO’s economic projections — for example, if lawmakers enact additional pandemic-related legislation — then economic outcomes will necessarily differ from those presented here,&#8221; Swagel wrote in a letter to Democratic Senate Minority Leader Charles Schumer, who requested the analysis.</p><p>The nation&#8217;s GDP already suffered its <strong>worst contraction since the Great Recession</strong> in the first quarter of 2020 as the pandemic roiled the global economy. The CBO&#8217;s analysis also came ahead of the feds&#8217; monthly employment report on Friday, which is expected to show unemployment at or near 20 percent in May.</p><p>Schumer and Sen. Bernie Sanders (I-Vt.) said the gloomy numbers underscore the need for Congress to pass another coronavirus stimulus bill. Lawmakers have already approved nearly $3 trillion in stimulus spending since late March, and they&#8217;ll be talking about another package <strong>&#8220;in the next month or so,&#8221;</strong> Senate Majority Leader Mitch McConnell said last week.</p><p>&#8220;In order to avoid the risk of another Great Depression, the Senate must act with a fierce sense of urgency to make sure that everyone in America has the income they need to feed their families and put a roof over their heads,&#8221; Schumer and Sanders said in a <a href="https://twitter.com/SenSanders/status/1267540099065053188/photo/2" target="_blank" rel="noopener noreferrer">joint statement</a>. &#8220;The American people cannot afford to wait another month for the Senate to pass legislation.&#8221;</p>]]></content:encoded>
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