Would the MAC discourage foreign direct investment in the United States?
Some readers have suggested that capital being brought into the United States to finance greenfield foreign direct investment should be exempted from the MAC. We should not, they argue, do anything to discourage productivity enhancing investment in America's manufacturing sector, for example.
Although the MAC is explicitly designed to cover all incoming capital, the MAC will not adversely affect greenfield investments. In fact, the MAC will make foreign direct investments in productivity-increasing projects based in the US far more attractive.
