The Irrelevance of Nationalities to Economies
15 March 2006
The Editor, USA Today
To the Editor:
You quote Clyde Prestowitz's lament that "our economy is on life support from foreign lenders and investors" ("Some would like to build a wall around U.S. economy," March 15). Such investment does indeed help the U.S. economy. But why call it "life support"? If investment in the U.S. were supplied only by Americans, would Mr. Prestowitz say that "our economy is on life support from domestic lenders and investors"?
Foreigners, like Americans, invest here not to rescue the economy but because such investments offer attractive returns. And these attractive returns exist because the U.S. economy is healthy rather than ailing.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
The Editor, USA Today
To the Editor:
You quote Clyde Prestowitz's lament that "our economy is on life support from foreign lenders and investors" ("Some would like to build a wall around U.S. economy," March 15). Such investment does indeed help the U.S. economy. But why call it "life support"? If investment in the U.S. were supplied only by Americans, would Mr. Prestowitz say that "our economy is on life support from domestic lenders and investors"?
Foreigners, like Americans, invest here not to rescue the economy but because such investments offer attractive returns. And these attractive returns exist because the U.S. economy is healthy rather than ailing.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Thursday November 30, 2006 at 4:30pm