"U.S. Household Deficit Spending: A Rendezvous with Reality"

Over the past decade, deficit spending by U.S. households has supported the U.S. economy. Research Associate Robert W. Parenteau analyzes the financial balance of U.S. households and finds that the pace of deficit spending is likely to stall and, possibly, reverse course. This reversion will jeopardize U.S. profit and economic growth, as well as the growth of countries dependent on export-led development strategies. His research supports the position of other Levy Institute scholars who have urged policymakers to recognize the consequences of current imbalances in the U.S. economy.