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Real and Imagined Dangers of U.S. Dependence on Foreign Capital

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  • EDWARD M. GRAHAM

Abstract

The United States has become a debtor nation because gross domestic savings have failed to be large enough to fund gross domestic investment. The resulting international indebtedness of the nation poses no immediate dangers for the U.S. economy or U.S. national sovereignty. The indebtedness does, however, reflect a mediocre economic performance of the United States that must be improved if the nation is to maintain its stature as a national leader. Demographic trends will help one major problem, low household savings rates, but more must be done.

Suggested Citation

  • Edward M. Graham, 1991. "Real and Imagined Dangers of U.S. Dependence on Foreign Capital," The ANNALS of the American Academy of Political and Social Science, , vol. 516(1), pages 126-143, July.
    • Handle: RePEc:sae:anname:v:516:y:1991:i:1:p:126-143
    DOI: 10.1177/0002716291516001011
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