“The price which society pays for the law of competition, like the price it pays for cheap comforts and luxuries, is also great; but the advantages of this law are also greater still than its cost, for it is to this law that we owe our wonderful material development, which brings improved conditions in its train.” – Andrew Carnegie
TARIFFS, GOLD CARDS, AND FOREIGN INVESTMENT
At a recent event, Jamie Dimon reminded us that billions of people around the world would want to become U.S. citizens if given the chance. It seems that the proposal of a “gold card visa” will provide some people with the means and opportunity to do just that. Will this stimulate investment, solve specific talent issues in high-tech, and raise revenue?
This is just one of the proposals that the new administration has planned to catalyze foreign investment and reorder the hierarchy of economic and political value chains around the world. The impact of these tariffs will be determined as they are implemented. However, it is fair to say that they are likely to cause uncertainty in the short-term. Business and investment, foreign and domestic, are drawn to where there is relative certainty of a high return. Will these changes protect U.S. industries, attract investment, and create new global partnerships?
The final question is whether the U.S. will remain the dominant location for foreign investment from companies and individuals seeking better opportunities. Economic development organizations will have to work together to implement these changes in a way that benefits their communities and develops sustainable opportunities. Will these policies be beneficial broadly across the country, or will they primarily favor highly advantaged metro areas?
Global investment is a critical part of a regional economic development strategy and will remain so in the future. National governments and cities around the world continue to invest heavily in these efforts because of the jobs, revenue, and cultural benefits of FDI, and they will surely launch strategies to counter the moves that the U.S. is making as we begin 2025. This competition will benefit companies and talented people willing to move and invest.
Let’s have a great week, lift each other up, and move forward together.
Kenny McDonald
President and CEO
One Columbus