|
Foreign Investments in the country are said to bring in additional revenue for the U.S. that could regenerate According to the Treasury Department new foreign capital investments will bring additional money, new technology and more jobs. If foreign companies are purchasing and starting businesses within the United States does that indicate an American decline and a threat to the national economy? Before we can answer this question we first must understand what sparks foreign investment. When the value of the American dollar is low it means that foreign currency is worth more purchasing powering within the U.S. It also means that a low American dollar can make domestic products cheaper when compared to foreign products. A low dollar doesn’t work in a vacuum. There must be confidence in the American economy. If the dollar is low and investors believe that the American economy will improve (i.e. they can make money here) they will spend their capital. This expectation of profit and available economic data can become a self-fulfilling prophecy as more investment leads to even more investment. New investment does produce more jobs as new plants are built and existing businesses can use the money for expansion. In turn the American government will also receive additional tax revenue off of business taxes, sales tax and income tax. This leads to better schools systems, heaping state coffers and more state programs. Now that we have a low dollar our economic data looks positive to foreign investors and money starts rolling in we must consider the longer term impact. In the beginning of such economic spark American companies need as much money as possible. The problem is that they are no longer American companies but European, Asian, or Middle Eastern companies. The blemish in the silver lining is that our country becomes more dependent on these foreign investments and this is a sign that we are losing our economic edge. As our economy becomes more dependent on this foreign cash our government becomes subject to more foreign influences. Whoever owns the means of production controls the government and has the influence. One cannot look at today’s politicians without also seeing their elite backgrounds. The answer to the question of whether or not foreign investment is beneficial to our country is that it depends on how much money has been invested. To help spark the economy foreign investment is by far the most beneficial. However, if the means of production become overwhelming our country will find itself in a difficult position. Murad Ali, a two-time published author, writes articles and offers advertisement space for businesses. Visit http://www.thenewbusinessworld.blogspot.com
Related Articles -
Foreign investment, money, politics, jobs,
| 
