Foreign Investment in the United States

Catherine Collins’ article was ostensibly about foreign investment in U.S. real estate, yet the entire article dwelt on Japanese investments.

It seems that everyone is jumping on the bandwagon to author a book or an article on Japan-bashing because the subject is beginning to hit a responsive chord with the public, with each publication tending to reinforce and heighten its fears and, of course, to make a buck or two for the author.

Collins is basically parroting what others have written and adds no new insights. We are probably the world’s biggest owner of foreign real estate, and yet we can’t control even the smallest of nations through that ownership.

In the L.A. Times (Washington Scene, Feb. 26), a Canadian was quoted: “ . . . serious estimates indicate that more than $50 billion have been invested in U.S. real estate by foreigners since 1983. Somewhat surprisingly (emphasis mine), 57% of that total investment originated in Canada, 28% in Europe, 7% in the Pacific Rim, 6% in South America and the balance. . . .”

It is obvious that the fear of foreign ownership is nothing more than fear of Japanese ownership and the surprise expressed in the quote is quite understandable, given the emphasis of the media on blaming Japan for our shortcomings. Our emphasis should be more on how we can become more competitive and regain our former world pre-eminence in commerce. We seem to have forgotten we are still the most powerful economic nation in the world.

SHIGEO YUGE

Los Angeles