What actually happens? Does the foreign government get a lump sum or do we send payments? Where does that money come from?
Also how tf do we do this? Aren’t we trillions of dollars in debt?
In: Economics
There is no fixed meaning. In many cases, it might be in kind. So the news might say x billion but it could be wheat or weapons or medicines or vehicles etc. Sometimes it is in the form of other aid through third parties – like building a school or hospital etc.
The US government has departments that focus on this (USAID) and this is budgeted like any other agency. The money comes from the US treasury.
The amount of government aid given is barely 1% of the total US government spending every year. So this is hardly going to move the deficit needle in any meaningful way.
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