Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Investing

More Foreign Investment, Less Tariffs and Subsidies

by December 20, 2024
December 20, 2024
More Foreign Investment, Less Tariffs and Subsidies

Tad DeHaven

Greenfield investment occurs when a foreign company establishes (or expands) a business in the US. Most foreign direct investment (FDI) in the US are acquisitions. However, the “US affiliates of foreign multinationals spend hundreds of billions of dollars per year in the United States on research and development and capital expenditures, with the biggest shares going to manufacturing.” In short, we should welcome it. 

According to a new report from Global Trade Alert, however, neither the Trump tariff-driven approach to attracting greenfield investment to the US nor the subsidy-driven approach preferred by the Biden administration bore results beyond an initial “sugar high.” 

Job creation, a stated aim of the presidents’ policies, trended south under both administrations. 

The report also looks at the degree to which import tariffs motivated foreign investment into US manufacturing (“tariff-jumping”). Only two of the eight manufacturing sectors show that imports may have been replaced with more foreign investment, which “cast doubt on the effectiveness of both Trump (sticks) and Biden (carrots-and-sticks) approaches to reviving US manufacturing in part by repatriating production from abroad.” 

Circling back to FDI via acquisitions, Japanese Nippon Steel’s proposal to acquire US Steel for $14.9 billion, which would come with $2.7 billion in badly needed investment in American steel facilities, has been on the ropes thanks to opposition from the Biden administration. President-elect Trump is also opposed to the deal. The opposition from the presidents comes despite reports that 90 percent of US Steel employees favor the deal. 

Scott Lincicome has a detailed breakdown of the Nippon-US Steel matter. The main takeaway is that the Biden administration and Trump want the public to believe their opposition is based on national security concerns and “protecting workers.” The truth is they’ve both chosen to support union bosses at the expense of said workers and the economy in general. 

Tariffs and taxpayer subsidies did not make the American economy the world’s most successful. Instead, the US’s success stems from cultural, economic, and institutional strengths that foster innovation and entrepreneurship. Sure, we could (and need to) do better by improving our relatively favorable regulatory environment and getting our fiscal house in order. But nationalist trade and industrial policies are counterproductive—as is stopping allies from investing here to placate union leaders. 

0
FacebookTwitterGoogle +Pinterest
previous post
Biden missing in action as Turkey inches closer to full-blown war against US-allied Kurds in Syria
next post
Will the Stock Market’s Santa Rally Bring Holiday Cheer to Investors?

You may also like

Overdrafts on the Line

March 28, 2025

Biden’s New Immigrants: Employment, Education, Jobs, and Industries

November 14, 2024

A TikTok Ban Passes, But the Courts Are...

April 24, 2024

One Year of Javier Milei

December 11, 2024

Food Freedom Is Personal Freedom—A Personal Crusade Should...

April 22, 2025

The Brazilian Judiciary’s Continued Censorship and the Brussels-Brasilia...

August 19, 2024

Jimmy Lai: Prisoner of the State

May 30, 2023

Trump Punishes Large Law Firm for Representing His...

February 26, 2025

My Year’s Worth of Election Law Writing

January 3, 2025

California Implications of Britain’s Plan to Truncate its...

October 6, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Marco Rubio holds first meeting with families of hostages held by Hamas

      June 28, 2025
    • Trump’s NATO Turnaround: From threatening to pull US out to ‘daddy’ of the alliance

      June 28, 2025
    • Week Ahead: As NIFTY Breaks Out, Change Of Leadership Likely To Keep The Index Moving

      June 28, 2025
    • Trump’s ‘big, beautiful bill’ faces Republican family feud as Senate reveals its final text

      June 28, 2025
    • Senate shuts down Kaine’s attempt to check Trump’s war powers

      June 28, 2025
    • 3 Stock Setups for the Second Half of 2025

      June 28, 2025

    Categories

    • Business (8,329)
    • Investing (2,081)
    • Politics (15,845)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved