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Wealth of Nations

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  • Sell America and Buy India, Says George F. Will

    Barrett Sheridan | Jul 13, 2009 04:02 PM

    In Sunday's Washington Post, George F. Will takes a swat at Obama, arguing that his pro-government policies are "diminish[ing] America's competitive advantages." He writes:

    Let's guess: Will a person or institution looking for a place to invest $1 billion seek opportunities in the United States, where policy decisions are deliberately increasing taxes, debt, regulations and the cost of energy, and soon will increase the cost of borrowing and hiring? Or will the investor look at, say, India. It is the least urbanized major country -- 70 percent of Indians live in rural areas, 50 percent on farms -- so the modernizing and productivity-enhancing movement from the countryside to the city is in its infancy. This nation of 1.2 billion people has a savings rate of 25 to 30 percent, and fewer than 20 million credit cards. Which nation, India or the United States, is apt to have the higher economic growth over the next decade? 

    Luckily, we don't have to guess! The United Nations actually tracks foreign direct investment, a measure of one country's investment in another. Buying a factory or stake in a foreign company contributes to FDI, and signals an implicit vote of confidence in the future prospects of that country.

    So how does the U.S. fare against India?

    [MORE AFTER THE JUMP]

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  • Russia Enters Its Lost Decade

    Rana Foroohar | Jul 13, 2009 06:42 AM
    Oil may be up, but Russia, strangely, is down. Commodities prices, on which Russia’s economy is ever dependent, have been rising for the past several months, leading some economists to predict a return to 3 percent growth (from the current negative-10... More
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