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To add, Levine's latest missive says: Peter Navarro writes: The US cumulative trade deficits in goods from 1976 — the year chronic deficits began — to 202
by robocat 2y ago
To add, Levine's latest missive says:
Peter Navarro writes:
The US cumulative trade deficits in goods from 1976 — the year chronic deficits began — to 2024 have transferred over $20tn of American wealth into foreign hands. That’s more than 60 per cent of US GDP in 2024. Foreign interests have taken over vast swaths of US farmland, housing, tech companies..."
and:
[Foreigners] pump "so much money into the U.S. economy that it fuels economic vulnerabilities and crises." There is too much foreign demand to own our tech companies, so we have to reduce it, by making the tech companies’ stocks worth less.
- robocat 2y agoAs a New Zealander, the arguments about foreigners owning tech companies is shit. Maybe foreigners own 40% of US tech companies, but if 40% of US tech company income is coming from outside of the US then that is fair. The US got a big slice of a bigger pie due to foreign investment. That investment surely supercharged the growth of tech companies (especially via IPOs) - just like good VC can do. And meanwhile the US government is wanting to buy our businesses - and they use policy and agreements/accords to push that agenda to the benefit of the US. New Zealand sells good businesses cheaply to US and EU owners. Our government wants to give away equity and earnings. The right leaning minority party (ACT) are financial plonkers trying to sell New Zealand cheaply like a child loving a credit card. Sell NZ for some immediate income but cost us income over the years (that's the bargain you get with investors). Fine if the pie size is increased, but it isn't.
- robocat 2y agoAn even better article - also looking at exchange rates: https://www.grumpy-economist.com/p/tariffs-saving-and-investment https://www.grumpy-economist.com/p/tariffs-saving-and-invest...