- The Congressional Budget Office says

the federal debt is expected to reach

or exceed 100% of thegross domestic product.

The last time we saw thishappen was back in 1946,

after years of militaryspending to win World War Two.

The cause now massivestimulus spending and reduced

tax revenue in response tothe coronavirus pandemic,

The policymakers approvingroughly $2.7 trillion

in spending since March, at the same time,

federal revenue fell 10% from April

through June compared to a year earlier.

What's more from March to June the debt

swelled by 16%, nearly $3 trillion.

Economists say that stimulus was necessary

to keep the economyafloat and more is needed.

Dr. Steven Skanky, isChief Economic Advisor

at the wealth management andinvestment firm Keel Point.

- Right now it's a boostthat helps keep the economy

recovering and certainlykeep stock markets soaring

- [Jenna] But in the longterm

it's harmful to economic growth.

- It tends to impede economic growth.

The expected rate of annual economic

growth will just be less.

- The gap expected to grow as Congress

and the White House eyeanother round of stimulus.

Treasury secretary, SteveMnuchin says he's willing

to sit down with Congress andnegotiate a new spending bill

to help strugglingfamilies and businesses.

But the price tag is an issue.

House Democrats say, they'llsettle for a $2.2 trillion

bail out, more than twice the amount

of a Republican bill in the Senate.

- I do not support 2.2 trillion,

but what's more importantis what is the breakdown

in getting money to Americanworkers, American families,

kids, where we can agree on money.

- Despite a struggling economy,

the stock market is goingstrong and positive news

on the vaccine front Wednesdaypushed it even higher.

After the CDC notified states to be ready

for a vaccine by November, the Dow closed

over 29,000 points for thefirst time since February,

the S&P and NASDAQ also hit new highs.

The exploding national debtcould have severe longterm

consequences turning theUS into a debtor nation,

the debt, dragging down the economy

and affecting our standard of living

and possibly weakeningother country's perception

of the dollar, eventually ending its role

as the reserve currency of the world.

In Washington, Jenna Browder, CBN news.