I’ve agreed to contribute a pair of posts per week to the White Bull’s business and policy substack; my first post there addresses the God-Emperor 2.0’s recent executive order that transforms America’s previously open door approach to foreign investment.
Investment by United States allies and partners can create hundreds of thousands of jobs and significant wealth for the United States. Our Nation is committed to maintaining the strong, open investment environment that benefits our economy and our people, while enhancing our ability to protect the United States from new and evolving threats that can accompany foreign investment.
Investment at all costs is not always in the national interest, however.
This is a major change from the “all free trade is good for the US economy” mantra that has ruled US trade policy since the 1980s. While this is not the place for a lesson in Economics 101 or a departure into economic history, the fact that M (imports) are subtracted from the sum total that is the result of the GDP equation is sufficient to point out that when (X-M) is negative, which is to say that there is a trade deficit, the economy is contracting, all else being equal.
In the same way, while “investment in America” sounds as if it should always be positive, if it is described as “selling American assets and property to foreign countries,” it obviously isn’t in any and all circumstances. There are times where the sale of American products are advantageous to the American economy, such as the sale of American steel to foreign automotive manufacturers, and times when they are not.
Read the whole thing there. As with Sigma Game, I’m aware that business and government policy tend to be of limited interest to the general readership here, so it will be good to have a specific place to address those topics regularly for the benefit of those who actually like reading about such things. But never fear, if I happen to post something there that I think is – or even that I think should be – important for everyone here to know, I’ll post it here as well.
But as with tariffs, a judicious foreign investment policy that takes each case on its merits is a vast improvement than simply selling off all of the family jewels to the first foreigner who happens to want them.