Stimulus packages could bring higher taxes and debt post Covid-19 say economists

12th May 2020 (Last Updated May 12th, 2020 08:54)

12 May

The lockdown measures imposed due to the Covid-19 pandemic has affected countries across the world with decline in revenues, high unemployment rates and economic uncertainty.

Governments are releasing stimulus packages to combat the impact but this may lead to higher taxes and debt, which will further burden people after the crisis.

Prof. Steve Hanke, Applied Economist at Johns Hopkins University, tweeted an article on the stimulus packages announced by the government and its consequences.

He noted that the US government has already created $1.48tn in deficit in 2020 and is still planning to announce more stimulus packages.

Hanke mentioned that future taxpayers will have to bear the hefty costs of the stimulus packages being announced by the government.