The United States economy could be carrying a bomb that will explode and cause the economy to rupture as the economy is already failing. The United States economy has been in shambles as the trade war has hit the nation hard, although the economy is showing signs that it has not been hit that carefully, the long term effects that are being considered are painting a whole different picture altogether.
The United States is well known for its public welfare policies and programs, which are the best in class and are providing the individuals of the economy the best of services for the taxes that they are paying. The amount paid to the individuals who have not availed these benefits of the policies given by the government is known as the transfer payments. These include Social Security, food stamps as well as Medicare and Medicaid, from the US government to Americans are set to reach a record of $3.22 trillion during the fiscal year 2020, which began on October 1st of 2019. These transfer payments are projected to make up 67.9 percent of government outlays and take up 14.4 percent of GDP this year, according to the reports. The primary cause of this is the slowing service sector of the economy that is seeing as much as 10,000 people retiring every single day.
With the economy already under stress, we expect that this burden will pull it down further and possible even plunge it into recession if not handled with proper care and attention
Tags : United States economy, Medicare, GDP,