|Obama Gambles on Amnesty to Boost US FDI|
|by Tom McGregor||Mon, Jul 28, 2014, 08:19 PM|
President Barry Obama has gotten so desperate to boost the ailing national economy that he's opened the U.S.-Mexico border to flood the country with illegal immigrants to convince global business people to invest in America with FDI (Foreign Direct Investments) so they can obtain easy access to US visas.
About.com reports that, "Inflow FDI reached what the U.S. Department of Commerce calls a "historical peak" in 2008 with total foreign investments of $328 billion. Investments in 2000 nearly reached that point, but fell to a low of $64 billion in 2003. (Think of how policies effect investment potential: in 2003 the U.S. had endured 9/11, was in a war in Afghanistan, and was just starting one in Iraq.)"
Economist Matt Ock is quoted as saying that, "Foreign investment increases the amount of capital-equipment, buildings, land, patents, copyrights, trademarks, and goodwill-in the host economy. The increase in the quantity and quality of tools for labor's use in converting one set of goods (labor and other inputs) into another (finished output) raises labor productivity and GDP. Because about two-thirds of GDP goes to labor as wages, salaries, and fringe benefits, rising output means higher wages or more employment. Thus, foreign investment raises labor productivity, income, and employment. Workers are better off with more capital than with less and are usually indifferent to the nationality of the investor."
According to About.com, "Investments rebounded to the 2008 level, but fell after the began late that year. Inflow FDI in 2009 was about $140 billion; in 2010 it was back up to $194 billion, and inflow in about $228 billion in 2011. The top investors in the U.S. in 2010 were Switzerland, about $37 billion; United Kingdom, about $33 billion; Japan, about $22 billion; France, $21 billion; Germany, $20 billion; Luxembourg, $12 billion; the Netherlands, $12 billion; and Canada, about $9 billion. Those countries accounted for 84% of total inflow FDI in 2010."
Obama's pledge to grant amnesty to millions of illegal immigrants has a double-edged sword though, since it could raise crime rates, spread contagious diseases and over-run the government with out of control debt to pay for more welfare benefits for newcomers.
To read the entire article from About.com, link here:
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