Federal Deficits, Growing Debt, and the Economy in the Wake of COVID-19 [March 23, 2021] [open pdf - 1MB]
From the Introduction: "The Coronavirus Disease 2019 (COVID-19) pandemic caused widespread economic disruption. Commerce slowed, unemployment reached rates not seen since the Great Depression, and many businesses were forced to close. In response, the government enacted a series of laws aimed at providing relief to struggling individuals and businesses and stimulus to improve economic conditions, most recently the American Rescue Plan Act of 2021 (P.L. [public law] 117-2) enacted on March 11, 2021. Altogether, this resulted in large increases in the deficit in FY2020, and a large deficit is projected for FY2021 as well. [...] Deficits and growing debt can affect the economy in the short term and the long term. However, the state of the economy simultaneously contributes to the ways in which deficits and the debt are likely to affect certain parts of the economy. It is therefore necessary to discuss the current state of the budget and debt in the context of the economy and recent economic trends. This report discusses the changing macroeconomic landscape, COVID-19, and how both might influence policy considerations for deficits and the debt."
CRS Report for Congress, R46729
Congressional Research Service: https://crsreports.congress.gov/