Why does the U.S have a chronic deficit in its balance of payments? Why is the dollar weak in the world financial market? What is the significant of this?© BrainMass Inc. brainmass.com October 10, 2019, 5:10 am ad1c9bdddf
The U.S. has a chronic deficit in its balance of payments due to overspending ; plain and simple. The U.S. isn't a saver country. We see saver countries that have a balance of payments surplus, which shows controlled spending. Over the past few decades, the U.S. has spent more annually than they have brought in and saved. The reasons include overspending in several areas including military efforts, research, development, as well as others, inflation, and unstable markets. This has ...
This solution discusses the US' chronic deficit in balance of payments.