Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Management article
-
Reference no. 89412
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1989

Abstract

A look at the various parts of the $9 trillion debt mosaic underlying the U.S. economy reveals no cause for alarm. After all, our 200-year-old economy has been built with well-managed debt. While there are instances where the debt was poorly managed, the Federal Reserve and the president have many instruments - tax measures, credit regulation, subsidies, and bailouts - to manage the economy sensibly. Moreover, debt today is 42% of GNP - well within historic bounds when compared with 1939 when debt was 53% and after World War II when it was 110%. And while foreigners hold some 19% of U.S. securities, they are unlikely to dump them. The United States remains one of the world''s best places to invest.

About

Abstract

A look at the various parts of the $9 trillion debt mosaic underlying the U.S. economy reveals no cause for alarm. After all, our 200-year-old economy has been built with well-managed debt. While there are instances where the debt was poorly managed, the Federal Reserve and the president have many instruments - tax measures, credit regulation, subsidies, and bailouts - to manage the economy sensibly. Moreover, debt today is 42% of GNP - well within historic bounds when compared with 1939 when debt was 53% and after World War II when it was 110%. And while foreigners hold some 19% of U.S. securities, they are unlikely to dump them. The United States remains one of the world''s best places to invest.

Related