The buzz around “American exceptionalism” keeps on growing, boosted by the strength of the US economy and markets compared with other developed countries – and to a stumbling China. But this confident talk overlooks the extent to which US growth now depends on deficits and debt.

Based on those measures, the US has started to look exceptional in a bad way. Once typical, it is now the biggest deficit spender in the developed world. During the pandemic, the US budget deficit tripled to more than 10 per cent of gross domestic product, more than double the peak in other developed economies.

Financial Times