Quote by Martin Feldstein
To finance this trade deficit, the U.S. has to borrow from the rest of the world or sell American assets like stocks, businesses, and real estate to the rest of the world.
Summary
This quote highlights how the United States finances its trade deficit by either borrowing funds from other countries or by selling American assets such as stocks, businesses, and real estate to the global market. Due to the trade deficit, where the value of imports exceeds that of exports, the U.S. relies on external financing to maintain its economic balance. Consequently, the country must borrow or liquidate its assets to fulfill the gap between incurred expenses and earned income from international trade. This quote emphasizes the methods employed by the U.S. to manage its trade deficit.
Topics
Finance
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