I have a question: In the article you show how the money that flows abroad to buy goods comes back to the US in the form of foreign investment. But, setting aside the interests of the Wall Street crowd for a moment, is that a good thing? Doesn't it mean Americans are trading ownership of their economy (i.e., shares in US companies) for the goods they buy from, say, China? Is this not a problem? (I'm not saying tariffs are the proper response - I just want to understand the point about the circular flow of money.)
I have a question: In the article you show how the money that flows abroad to buy goods comes back to the US in the form of foreign investment. But, setting aside the interests of the Wall Street crowd for a moment, is that a good thing? Doesn't it mean Americans are trading ownership of their economy (i.e., shares in US companies) for the goods they buy from, say, China? Is this not a problem? (I'm not saying tariffs are the proper response - I just want to understand the point about the circular flow of money.)
I want to understand both sides of the question to understand which solution offers the greatest good in the longest run.
Great piece, Roger; too bad no one in the administration understands any of this. Or cares.
“Sir - thank you for fixing that terribly unfair trade imbalance with Lesotho”