So, "Newly Rich Nations Want a Piece of Us," The Washington Post reports, and The Seattle Times features in today's issue. http://seattletimes.nwsource.com/html/nationworld/2004005678_oilinvest11.html
Why should these papers wring their hands over such a development? Both supposedly understand global finance and neither is an economic nativist. Why are they trying to stir up such totally inappropriate angst in this country?
David Cho and Thomas Heath tell us about funds from oil-rich countries and China "buying stakes in key industries in the U.S...including banks, ports, stock exchasnges and energy companies." Well, yes, and that's good, isn't it? Nationalists elsewhere are always decrying U.S. companies' purchases of property and companies in their countries and that doesn't seem to upset Americans. In fact, the best thing those countries can have is investment from us. So, why should it upset us when the shoe is on the other foot?
Back in the 80s when Japan was riding high we were supposed to be alarmed that the Japanese were purchasing such American landmarks as Rockefeller Center. Well, did it make any difference? The answer is, none. Last time I was in New York, Rockefeller Center was still there and looking good.
When foreigners buy property and companies here they actually are expressing confidence in our future, and they also are helping assure it. The money they pay goes to Americans, doesn't it? The business they help to generate employees Americans, doesn't it? The international links that are forged benefit us as much as the foreigners, don't they?
Then why the scare stories?
