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Northern IL | Economic theory and even accounting principles, you are right foreign investment (Capital Account) is a positive impact to the books. That does not mean it is a positive concept for the Country. Granted we do get ourselves in spots like the simple federal deficit where we need as much outside capital as we can get. Answer is to not have budget deficits and the government need for capital is greatly reduced. With your thoughts it must be ok for the United States to be sold out to foreign investors. I would rather be in the position of buying out the rest of the world. Be careful on distinguishing the difference between something positive for economic theory and what is really good for the People of the United States of America. One issue that complicates this is that the US dollar is basically the reserve currency for the world. Keeps our dollar stronger and makes it harder to sell our goods produced. The United States of America will be better off if it protects itself, instead of giving itself away to the rest of the world. Not sure why none of you argue that foreign countries should reduce their tariffs, taxes and currency manipulation while we just go ahead with our heads in the sand trying to justify it with economic theory that in their minds seems to only apply to the U.S. | |
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US Trade deficits in 2024
