America in the World Economy: 2010

The American economy continues to grow at a steady - even unspectacular - pace. Its recent performance, especially in creating new jobs, has been far better than that of its comparably wealthy competitors in Europe. But this remains a seriously tenuous economic expansion, built on enormous public and private debt and, consequently, on heavy borrowing from abroad. America is consuming far more than it produces and saving far less than it invests. Many economists are increasingly concerned that this will not last. If America's creditors become reluctant to lend to the United States, the outcome could be bad - quite possibly a sharp fall in the dollar. If the fall went too far, faster inflation and higher interest rates would be the result. Will foreigners keep lending what America needs to borrow? What happens if not? Where will we be in 2010? Benjamin Friedman, David Hale, Jack Kemp and Lawrence H. Summers discuss with Robert D. Hormats.

Festival: 2006

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