Assets 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.”
About This Quote
Source Lecture: International Economics, 2008
Explains that the U.S. finances trade deficits by borrowing or selling assets abroad.
In simple terms: U.S. funds deficits by borrowing or selling assets to other countries.
Consider fiscal impacts of trade deficits.
Themes
Mood
Type
When to use this quote
- policy making
- investment decisions
- budget planning
Key Concepts
Questions to Reflect On
- What are the long‑term risks?
- How can trade balance be improved?
Reliance on foreign capital can increase vulnerability.