Why is there so much American capital in Asia and things like futures?

Conservatives insist that tax cuts for the wealthy means more capital to be invested; thus creating jobs.


If so, then why under the current tax cuts for the wealthy is there so much money overseas? And so much money chasing other money in complex investment products? A futures market? People need jobs and there's money to bet on the outcomes of other bets?


How does any of this make sense?|||You can't stop globalization. It's the way of the future.|||People who have money want to hold onto it, first of all. That means don't lose principal. When people have money to invest, they go where they have the best chance of meeting their goals of earnings and safety.





Because of all the government rules, regulations and taxes in the US some people may be forced to go elsewhere.





The goals of most are maximize profits while minimizing risk. Creating jobs is not a goal. Supporting others is not a goal. Certainly paying confiscatory taxes is not a goal of a savvy investor.|||A smart investor knows that the greatest returns are in fast developing areas, such as Asia. GM now sells more cars in China than US. The idea of US tax cuts are to make domestic investments more attractive. It doesn't mean all the funds will remain in US, but some will. And the theory that the rich just sit on money is ridicules. We always want to invest in growth opportunities. The reason so much capital is on the sidelines is due to uncertainty in the US. One thing is certain- raising taxes will not spur domestic investment and job growth, that's a no-brainer.|||It's a Global Economy now - sorry, you haven't heard about the latest trends..............



Government policies have screwed Americans once again.



@ tax increases are only a temporary fix for things - somehow jobs need to be created but the Global Governmental policies are already in place - I think America is screwed long term.



I do not think jobs will ever come back - Increasing taxes may help for awhile but even the rich will not let that happen forever - they will take their money elsewhere.|||Yes, that money will create jobs, in China and India.





What we should do:


Tax cut for middle class, tax increase for rich. With tax cuts, the middle class will buy more from the rich. In turn, the rich will hire more people.


Both the middle class and rich will get richer, and the jobs will be in america.


Economist nobel prize please!|||Well, being a FUTURES trader, and rich, I can say CHINA and the CHINESE have a much smarter population when it comes to investing than the average U.S. Citizen which does not even know what FUTURES means.





So, how many of you know what FUTURES mean?





Stocks?


Bonds?


What are they to all you political wizards.





So, that is my answer. American IGNORANCE which I have used to get rich sitting on my computer.|||Liberals like Pelosi, Reid and Obama have made life so caustic and uncertain for investors, that - with the click of a mouse - the rich send their money overseas





its really sad how Liberals are destroying America|||There is so much money overseas because thats where obamas stimulus money went|||It's simple - Asia has positive growth.|||I have my money in pasts.|||Because we still haven't ended FREE TRADE.





The USA became a prosperous nation 100 years ago because we were the king of globalization.





What is happening today? Jobs leaving the USA, entire factories are shutting down and moving to foreign countries.





100 years ago, entire factories were moving to the USA. That's what caused that huge wave of immigration, because the factory owners often brought all their workers with them, paying their way in steerage on a steamer ship.





Why?





Tariffs. Tariffs on imports were the main source of revenues for the federal government. Income tax was unconstitutional until 1913, when Congress passed the Sixteenth Amendment. So tariffs were paying for most of the federal budget before then.





Tariffs raised the prices of imported goods, and it was harder for foreign factories to compete. So they moved their factories here, to avoid paying the tariff.





Tariffs were the successful way of managing globalization, and it turned the global economy in our favor. We became an indudstrial superpower exporter in 1880, and we became a creditor nation in 1914, because of 100 years of tariffs.





Tariffs also eliminated slavery. Look up the Tariff of 1828. Slave states hated tariffs. Slavery was holding us back, we had to abolish slavery before we became prosperous.





We ended tariffs in 1913 and replaced them with income tax, because exporters should not have tariffs. Once you reach that level of prosperity, you become vulnerable to retaliation from your customer nations. That's why the Smoot-Hawley tariff backfired in 1930. We were still an exporter, and other nations retaliated.





But that all ended when we lost our trade surplus in 1980, and we became a debtor nation again in 1988.





It was time to go back to tariffs during the 1980's. But the wealthy Wall Street Journal types were salivating over the idea of opening sweatshops in emerging Asian nations, so they raised the bogeyman of Smoot-Hawley to scare us away from tariffs.





The result has been an economy spiraling out of control. Our trade deficit is now equal to our total exports, which is more than ever in our entire history. We send out a trillion dollars a year on our trade deficit, which adds a trillion dollars of debt to our current account balance every year. The national personal savings rate was 4% in 1930, and it peaked at 10% in 1980. Today it is negative.





Our economy is now in crisis, unemployment is hovering around 10%, and our government is racking up staggering debts, from wars and stimulus giveaways that will never be paid back by the recipients. That means higher taxes in the future, which will only push us down deeper into the pit.





Free trade is making us a beggar nation.





Tariffs made us a prosperous nation.





It doesn't take a rocket scientist to figure out what we're doing wrong.


Source(s):


World Almanac 2009


Tariff of 1789, 1790, 1792, 1816, 1824, 1828, 1832, 1833, 1842, 1857, 1883


Revenue Act of 1894, 1913


Sixteenth Amendment to the U.S. Constitution