, Columnist
Actually, Americans Don't Spend Too Much
Foreign money, not greed, is driving down U.S. savings rates.
Not the culprit.
Photographer: Andrew Lichtenstein/Corbis/Getty ImagesThis article is for subscribers only.
Why does the U.S. run large trade deficits? As Harvard professor Martin Feldstein recently explained, the answer seems obvious: Americans save too little and consume too much. As a result, they must borrow from abroad to fund domestic consumption binges. Until Americans become a lot thriftier, Feldstein warns, U.S. trade deficits will remain high.
QuickTake Free Trade and Its Foes