- Reaction score
- 9,883
- Points
- 1,160
This has got me thinking. I need a better economics advisor.
The only thing that kind of makes sense to me is:
Foreign Investment is seen as a liability and not an asset. Financially that is literally true and politically it can be true (Chinese investment in Canada for example). But the counter to this is Trump actively courting foreign investment at Davos, making great play of the Saudi package, and using tariffs to support a competitive tax regime that, together with the tariffs, creates an attractive environment for foreign investment.
But.
Foreign investment represents a cash out flow (I think).
If Canada is investing 50% more in the US than the US is in Canada then Canadians are reaping benefits from the US economy that the US isn't getting from Canada.
Also
Why are Canadians investing more in the US than they are in Canada, and why aren't Americans investing more in Canada? Is that because the quality of the investments are better in the US? More surety? Better rates of return? Because, I think, better rates of return will only exacerbate the cash outflow that results from the investment disparity.
If all that then
To even out the cash flow resulting from the investment difference than the US might want better access to better investment opportunities in Canada (and other countries)
....
As I said I need a better economics advisor. Any thoughts?
