RE: So his argument is, it is okay that we send a lot of our money overseas to purchase products, because those foreign companies use that money to purchase ownership in US companies?
If I understand him, that is PART of his argument. His response to that would then be — What’s wrong with foreign businessmen and investors owning American companies? Don’t Americans do the same when they buy stocks in Toyota, or Alibaba if not directly, via International Mutual Funds?
And his next rhetorical question would be this — would foreign investors be so stupid as to allow American companies whose stocks that own to do badly so that they lose money?
His point, if I understand him is this -— investors are investors regardless of whether they are Americans or Asians or Canadians. They have a vested interest in seeing the companies that they own DO WELL. How is that a bad thing?
Go walk around the 55,000 factories closed since 1999 and the surrounding devastated small towns for your answer. North Carolina would be a great place for your education to start.
If foreign companies buy out US companies - they can close those companies / use them as proxies forcing us to buy MORE from the foreign companies. Some tax money may stay here, but profits and such all go back to the main office. Capital and know how is shifted and all that is left are Mc Jobs. Further, do you really want China & Co to have controlling interest in our infrastructure?
It’s a bad thing because they have motives beyond just making profits.
The US has the preeminent military force in the world, and people in other countries have a vested interest in influencing where and how and who that force is unleashed upon.
So country A wants to get rid of country B, but does not want to expend the military resources (or has no such resources) available, what do they do? Invest in US companies, then through monetary donations buy influence in the US political process, get the US to attack country B.
That’s just one example. People who are your countrymen who will share the same fate with you are more likely to work for your mutual interest then foreigner who is only interested in self-gain. Economists make the mistake of assuming that everyone is just motivated by money, when it’s only one of many things that motivate people.