[barry-cotter]

Japan, Taiwan and South Korea all taxed the crap out of their people while poor to subsidise industry by controlling foreign exchange. It still would have been impossible without massive amounts of foreign investment. They had to borrow the money abroad to invest in industrial infrastructure. Same for the US in the 1800s. Britain had the capital. The US had the exciting investment opportunities.

The UK took so long to get to the Industrial Revolution because it had to save the money itself. Everyone since then has been able to rely on capital other people in order countries have saved to jumpstart their economic growth.

[Aune]

Yes. But his point is that what we have been doing is more like taking on credit card debt to spend on booze than taking a bank loan to buy machinery. And assuming that being the case, your statement completely misses the mark.