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Economics
Twin Deficits
When a country has both a big government budget deficit and a big trade deficit at the same time.
The two deficits are often linked: government borrowing can strengthen the dollar, making imports cheaper and exports more expensive. Economists debate how dangerous the combination really is.It's like spending more than you earn on your credit card while also buying way more stuff from other countries than you sell to them.
Real world: The U.S. has run twin deficits for many years — big government borrowing plus importing more than we export.
💡 Twin deficits sound scary but the U.S. has run them for decades without collapsing — still, most economists say they're not sustainable forever.