Some Decline
17 June 2006
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Floyd Norris interprets the U.S. trade deficit as evidence of "the declining trade performance of the United States" ("Without Being in the Room, a Far East Behemoth Will Be a Player," June 17). Does foreign direct investment here of nearly $100 billion, in 2004, evince economic decline? How about foreigners' continuing attraction to dollar-denominated equity shares and bonds? Whenever foreigners invest in dollar-denominated assets they reveal confidence in the American economy - and they strengthen it by bringing capital to our shores.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Floyd Norris interprets the U.S. trade deficit as evidence of "the declining trade performance of the United States" ("Without Being in the Room, a Far East Behemoth Will Be a Player," June 17). Does foreign direct investment here of nearly $100 billion, in 2004, evince economic decline? How about foreigners' continuing attraction to dollar-denominated equity shares and bonds? Whenever foreigners invest in dollar-denominated assets they reveal confidence in the American economy - and they strengthen it by bringing capital to our shores.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Saturday March 31, 2007 at 11:58am