“Middle Eastern investment in the United States is once again picking up steam, showing big gains since the tense period following the Sept. 11, 2001, terrorist attacks. And while some takeovers are triggering alarm — most famously, the purchase by a Dubai-owned company of a seaports management firm — others are evoking warm welcomes. . . . Behind such transactions are two powerful forces. One, of course, is the high price of energy, which has left several oil-producing Arab countries swimming in cash. The other is the burgeoning U.S. trade deficit — $726 billion last year — which means that the United States needs foreign capital; a country that imports more than it exports must cover the gap with money from abroad.” (Washington Post, Tuesday)
When will newspaper economics writers learn economics?
FEE Timely Classic
“A Deficit of Understanding” (pdf) by Donald J. Boudreaux