Global Capital Spending is Strong

Posted by: Michael Mandel on April 13

I did an article this week suggesting that the weak capital spending numbers in the U.S. are misleading, and that U.S based companies are actually spending very aggressively—just overseas. Take a look at the story here.

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Reader Comments

Brandon W

April 14, 2007 04:05 PM

"I don't have to hire one more person in the U.S.," says [Micron CEO] Appleton. "I don't have to invest one more dollar here--and we'll be just fine."

Exactly. And exactly why the big corporations have been such big proponents of globalisation. We're getting exactly what we asked for.

Mike Reardon

April 18, 2007 04:53 PM

This foreign investment is not investing in Arkansas or Georgia and not into California, maybe it should be given the same consideration as to its domestic profit return from lower cost products sold into our markets. In the same way your last post on professionals low rate of underemployment can't show the expansion of foreign professionals employment that is going on from western direct investment and returning direct services into our domestic production. That shift in investment and transfer of production has been going on for the last twenty years. Economic statistics just don't fully apply the full abilities of foreign labor in our markets. It also can't reflect many of the undocumented foreign workers now in the labor force. We may have past full employment for the market we have now and our direct overseas investment still helps floats our present GDP.

dpw

April 24, 2007 12:53 PM

Jim Cooper did a 3/30 video talking about how BAD capital spending was. Now you say just look at overseas numbers. Aren't you guys at odds, here? He's pretty bearish on the US economy.

Mike Mandel

April 25, 2007 04:26 AM

Jim was focused on capital investment in the U.S. being weak, while I was looking at overall cap spending by US-based corporations, which includes money that they spend in the rest of the world as well

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Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.

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