Principles of Macroeconomics / Unit 7 MAC 0612 short lesson, about 20 seconds
Borrowing That Pays
Captions available
The idea
Borrowing from abroad can pay for itself, if what it funds raises the country's ability to produce and so to repay.
In practice
The United States ran deficits through most of the middle eighteen hundreds while building railroads.
Where people slip
South Korea did the same in the nineteen seventies, borrowing heavily, investing heavily, and running surpluses later.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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