alt Hacker NewsWhy would it even be desirable to have less foreign ownership of US assets?
Like what is the sound logic here?
As an Italian I would love more foreign ownership of Italian businesses, that would not only bring capital but more scrutiny.
Replies
The extreme opposite of zero foreign ownership would be full foreign ownerhship, ie. colonization. All your resources and wealth belong to a foreign nation.
If we agree that that's a bad thing, then it stands to reason that there's a certain point where foreign ownership becomes a bad thing.
I think China has done an excellent job of bringing in foreign investment while keeping those foreign investors from running amok.
If the foreign entities are not aligned with your country's values, what good is it? For example, Putin is arguably one of the wealthiest individuals in the world. Would you be bothered if he scooped up a controlling share in Italy's defense contractors or machining manufacturers?
On one side it could mean that less money leaves. That is no dividends are paid to outside the country. All profits stay in.
On other hand the economy overall and stock market especially have enormously increased due to outside investments. As injection of money in later one directly pushes valuations up. And the borrowing is only possible when someone loans money...