Tariffs, Deficits, and Debt
Scott Sumner recently had a post discussing a potential relationship between trade deficits and government debt. To sum up, since debt must come from savings, if domestic savings are too low relative to domestic investment, then foreign savings must come in and make up the difference; the United States imports foreign savings. When the government incurs deficits and decides to fund those deficits by incurring debt, the savings used to pay for that debt can come from domestic sources or foreign sources. Читать дальше...
