Review 7 -- No Title

Marris's book analyzes two developments of the Reagan years. These years include the capital investment boom. It was the strongest expansion since the 1950s--all at a time of declining inflation rates (and hence interest rates). The two developments which Marris focused upon are (1) the rapid growth of U.S. government debt and (2) the trade deficits on the international accounts which paradoxically coincided with a super inflow of foreign funds. The funds, of course, financed in large part the domestic deficits and the expansion in real capital.