Published by:
Harvard Business Publishing
Length: 6 pages
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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.
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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.