What do you all think of foreign companies buying out much of US businesses/industries? I personally do not like it at all. What are the implications, results? Does the capital from buying the company end up helping the US? Who benefits/loses? Is it important that the general population know that thier money is leaving the country every time they make a purchase? Here are some neat resources: http://americawakeup.net/ http://www.forbes.com/2008/04/10/foreign-investment-stocks-2000global08-biz-cx_do_0410investments.html
Did you read your own link? Even Forbes points out that this is not a big problem. Total foreign investment in U.S. land, buildings, corporations, stocks, loans, etc., is a drop in the bucket. We own more of their stuff! Depends on what they do with it. Bear in mind that in many cases, the purchase of a U.S. company by an American is not a good deal for the company's stockholders, employees or customers. They often simply scavenge it and let it die. Most people don't seem to care. If they did, they wouldn't shop at Walmart. Did you vet that second source? Forbes is okay (and from what I read it does not back up your gloomy prediction), but surely you know that these days anybody with a buddy who's a good writer, another buddy who's a good graphic artist, and another buddy who knows his way around the web, can set up a website spewing out "information" that he wants people to believe. The problem with "information" on the internet is that on the majority of websites it has not been edited. It does not conform to the minimal standards of journalism.
i believe the future economy of the US will be biotech based, not industrial. the US stands a good chance of creating an economy that will create the job with the person.
In general, no, I am not concerned about foreign interests acquiring US based assets. American companies purchase foreign assets all day long as well. It ties back to the notion of comparative advantage as first voiced by Adam Smith. So to answer your question, everyone wins. I think history has shown protectionism generally doesn’t work as a long term strategy. http://en.wikipedia.org/wiki/Comparative_advantage http://en.wikipedia.org/wiki/Protectionism However, I am concerned when some foreign companies acquire interests in companies that could threaten our national defense or acquire undue influence in our government. And with the Supreme Court ruling which entitles corporations to all the rights of persons, my undue influence concerns become more problematic and more concerning. There are laws on the books to address my national security concerns. Foreign purchases of critical US assets are reviewed and must be approved by the US government (i.e. Committee on Foreign Investment in the United States). But we need to be always vigilant, the world is ever changing. Unfortunately money plays a huge role in our politics. http://en.wikipedia.org/wiki/Committee_on_Foreign_Investment_in_the_United_States What I am concerned about, and what you alluded to, is the exporting of US jobs. The US government should not subsidize companies who choose to export American jobs through the US tax code as is currently the case. Republicans have been pretty adamant about keeping this and other special tax subsidies on the books. I am also concerned about trade policies that allow US corporations to export pollution and evade some basic worker protections. And I am particularly concerned about the theft of intellectual property by countries like China. So this is a complicated and important topic. In general, we benefit hugely from free trade, but it comes with a price. And we should be smart about how we manage the issue. It will be with us for a long time.
