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Boosting Investment in America
Posted By Aaron Walling On March 30, 2011 @ 4:00 pm In Economics | Comments Disabled
Recently, the Organization for International Investment  released a report showing that the United States received $194.5 billion in foreign direct investment (FDI) in 2010. This FDI is responsible for millions of jobs, billions of dollars in exports, and higher wages for U.S. workers.
FDI occurs when someone in another country directly builds a facility in the U.S., like the $1.5 billion Toyota Tundra plant  in San Antonio, Texas, that employs nearly 1,700 people. FDI does not include the billions of dollars that foreigners invest in the U.S. each year by buying stock in U.S. companies or loaning money to the federal government.
Critics say that companies prefer to invest in low-wage countries, causing job losses in the U.S. However, the U.S. is the world’s largest recipient of FDI. As such, the U.S. receives the many benefits  associated with foreign direct investment, including job creation, higher wages, increases in exports, and increases in research and development.
As the Heritage Foundation’s Index of Economic Freedom  shows, countries that do the best job of promoting investment freedom are the most likely to prosper. FDI, like any investment into the economy, spawns economic growth and opportunity. Therefore, maintaining a welcoming environment for FDI is one way to help jumpstart the economy again.
Aaron Walling is currently a member of the Young Leaders Program  at The Heritage Foundation.
Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2011/03/30/boosting-investment-in-america/
URLs in this post:
 Image: http://www.foundry.org/wp-content/uploads/glowimages018844-Robots-welding-tru.jpg
 Organization for International Investment: http://www.ofii.org/docs/FDIUS.pdf
 plant: http://www.toyota.com/about/our_business/engineering_and_manufacturing/tmmtx/
 benefits: http://www.investamerica.gov/home/iia_main_001154.asp
 Bureau of Economic Analysis: http://www.bea.gov/newsreleases/international/mnc/2010/mnc2008.htm
 Index of Economic Freedom: http://www.heritage.org/index/
 Young Leaders Program: http://www.heritage.org/about/departments/ylp.cfm
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