While the fight against the pandemic continues to challenge many countries across the globe, the U.S. economy, in particular, has been terribly ravaged by the coronavirus epidemic. As the nation continues to race against the national debt clock, the Congressional budget office envisions that “the federal debt is on track to outpace the U.S. economy in 2021.”

The current federal budget is also on its way to exceeding the costly Second World War budget deficit in the 1940s. With the debt expected to surpass the size of the economy by fiscal year 2021, millions of Americans will be out of work and many businesses will shutter. 

“I think we should think and worry about the deficit an awful lot, and we should proceed to make it larger this fall,” exclaims Maya MacGuineas, president of the Committee for a Responsible Federal Budget in Washington. The fear of federal government’s heedlessness on the deficit issue is heightened under these unprecedented times.

As the pandemic continues to hinder growth in companies and the economy, many businesses are planning to take a different approach to save their companies from bankruptcy and drastic declines in stocks. In particular, United Airlines expects to reduce its employed workers to 16,000 in the fall, while Ford “plans to cut 1,400 salaried jobs in North America,” as reported by The New York Times.

Some businesses have even complained about the struggle to hire amidst the pandemic. United Airlines and many other airline companies cutting jobs could put further pressure on Congress and the Trump administration to renew the $25 billion in stimulus funding to compensate for passenger airlines.

In July, United “had warned [its] 36,000 employees [that] they could be subject to furlough.” The company’s cut in employees will affect the 7,000 flight attendants, 3,000 pilots, and thousands who work in maintenance, airport operations, and other roles. 

Many of these employees agreed “to take buyouts, early retirement or temporary leave.” Since a year ago, the number of people flying declined to nearly 70% and that number isn’t going to recover until an official vaccine rolls out.

Industries ranging from the motor business to department stores are facing drastic declines in sales percentages. Maintaining salaried employees and cost budgets has also been a challenge for these companies. In addition to eliminating nearly 1,400 salaried jobs, Ford has also replaced its top executive, Jim Hackett, as he plans to retire in October. 

Macy’s, the largest retail store company in the country, reported “it was cutting 3,900 corporate and management positions.” The company’s sales fell 36%. While also in possession of Bloomingdale’s and Bluemercury, Macy’s reported a total net loss of $431 million. In June, the company announced its future plans, such as closing at least 125 stores in the next three years, leaving the company with around 400 locations, and reducing about 2,000 jobs.

With the ongoing national financial crisis and outbreak, the next stimulus bill will be a difficult challenge for Congress and the Trump administration to push out to small businesses, as well as the unemployed and low-income households. However, the problem between implementing the next stimulus check lies between the drastic increase in the National Debt Clock and the millions of unemployed unsheltered, as well as businesses shuttered.

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