The effects of pandemic-related legislation on output

The effects of pandemic-related legislation on output

Collection:
Health Policy and Services Research
Contributor(s):
United States. Congressional Budget Office, issuing body.
Publication:
[Washington, DC] : Congressional Budget Office, September 2020
Language(s):
English
Format:
Text
Subject(s):
Coronavirus Infections -- economics
Gross Domestic Product
Pandemics -- economics
Pandemics -- legislation & jurisprudence
United States
Genre(s):
Technical Report
Abstract:
In March and April of 2020, four major federal laws were enacted to address the public health emergency and the economic distress created by the 2020 coronavirus pandemic. That legislation provides financial support to households, businesses, and state and local governments. In this report, the Congressional Budget Office estimates the legislation's effects on economic output. (1) Deficits. The legislation is projected to add $2.3 trillion to the deficit in fiscal year 2020 and $0.6 trillion in 2021. (2) Short-Term Effects. CBO estimates that the legislation will increase 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 58 cents. (3) Longer-Term Effects. By increasing debt as a percentage of GDP, the legislation is expected to raise borrowing costs, lower economic output, and reduce national income in the longer term. (4) Uncertainty. The estimates in this report are subject to considerable uncertainty, especially because of factors associated with the pandemic.
Copyright:
The National Library of Medicine believes this item to be in the public domain. (More information)
Extent:
1 online resource (1 PDF file (13 pages, 3 unnumbered pages))
Illustrations:
Illustrations
NLM Unique ID:
101772063 (See catalog record)
Permanent Link:
http://resource.nlm.nih.gov/101772063