As foreigners have invested in the Czech Republic the gap between GNP and GDP has risen. That is, the amount the foreigners take out of the Czech Republic has risen as a portion of the Czech economy.
Therefore a burst of foreign investment does do all that well for the people:
You can see what this has meant for the Czech Republic in the figure. For what it’s worth, the lag of GNP behind GDP shown there is several times as large as most predictions of extra growth from U.S. tax cuts.
Now, I don’t believe this tax “reform” will produce anything like the capital inflow its defenders claim. But even if it does, Americans won’t see much of the benefits.
Back when Czechs got 100% of the local economy. Today they get 93%. That’s the complaint.
Hmm. Over the same period of time the Czech economy has doubled in real terms.
Czechs used to get 100% of X, they now get 186% of 2X.
This is a bad deal is it Professor?