To finance this trade deficit, the U.S. has to borrow from the rest of the world or sell American assets like stocks, businesses, and real estate to the rest of the world. – Martin Feldstein
A rise in the level of saving can reduce aggregate activity temporarily but only a sustained high level of saving makes it possible to have the sustained high level of business investment that contributes to the long-run growth of output. – Martin Feldstein
First, I think the science of monetary economics has clearly gotten better. – Martin Feldstein
Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work. – Martin Feldstein
Well, first let me say that I think health care reform is important. It has to be a priority. And our system is broken. The Finance Committee bill is the best effort yet, due in large measure to the efforts of my colleague, Olympia Snowe, but its not there yet. It falls short. – Susan Collins