How Will We Pay For The Astronomical Costs Of The COVID-19 Crisis? 'Draconian Cuts In Essential Services' Could Come Soon

CHICAGO (CBS) -- Hurricane Katrina plus Hurricane Sandy, add in wildfires, earthquakes, and 9/11; and it all hits at once across the country. That's the economic impact of the coronavirus outbreak in the U.S.

CBS 2 Morning Insider Lauren Victory takes a look at how we're going to pay for the astronomical costs.

The headlines are enough to make your head swirl; $500 billion here, $2.3 million there. Monetary Hail Marys from Congress, in the form of relief packages intended to help us grow; it's sink or swim right now.

"Cash is disappearing overnight," said Diane Swonk, chief economist at Grant Thornton LLP, an accounting and financial advice firm.

Swonk explains one fix: the Federal Reserve is printing more money than lending it. This draws fears of inflation down the road, but Swonk said it's worth the risk right now.

"This isn't the Titanic. COVID is the iceberg. We need boats in the water to keep us afloat in COVID-tainted waters," she said.

Here's the game Chicago and Illinois are currently playing: retail dollars aren't coming in, because most businesses are shut down. Revenue from state income taxes are also off the board, because Illinois pushed back the filing deadline. The Federal Reserve recently stepped in with a loan to bridge the gap, but we have to pay that back somehow.

"It could be a pretty short period of time where we see draconian cuts in essential services. Number one in the line is education," Swonk said. "Also things like garbage collectors. You could even see first responders getting hit."

"Each state is going to have to look within and make tough decisions," CBS News Business Analyst Jill Schlesinger said.

Schlesinger said if Illinois doesn't make cuts, Gov. JB Pritzker could be looking at a tax hike along with another uncomfortable topic.

"Maybe once and for all, a state like Illinois is going to have to deal with the pension crisis that it faces," she said.

There's no way to mask that we'll pay in the future for financial decisions made now, but consider the figure on top of Chicago's Board of Trade. Perhaps we can internalize Ceres, the Roman goddess of agriculture, and grow from this.

President Donald Trump this week is expected to announce a new coronavirus task force aimed at reviving the economy. On the council will be doctors, business leaders, and possibly mayors and governors.