America's Troubling Investment Gap

For the first time in decades, America is on net losing, not attracting, growth capital.
JULY 5, 2011
By David Malpass And Stephen Moore

In June, President Obama celebrated a rare sliver of good economic news: Foreign investment was up 49% last year over 2009. The president says that this boost in capital shipped to the U.S. by international companies or foreign investors leads to more businesses and higher-paying jobs here at home. He's right.

But this isn't the economic success story that the White House is spinning. The real truth of the recession and limping recovery is that for the first time in decades America is, on net, losing, not attracting, growth capital. That may be the single most important explanation for persistently high unemployment and stagnant wages. the rest

Much more worrisome is that Americans are taking their investment dollars abroad at a faster pace than foreigners are bringing capital to these shores.

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