I remember in the mid 80's as was following closely the free trades talk between Canada and the US that it was of great importace to the US to include the free flow of capital , as it was also subsequently in GATT talks and all further negociations about opening trades across the world . The reason for the US to insist most on the free flow of capital was simply related to the facts that being the richest they had the most to gain from it .

I would argue that the demand for free capital movement stemmed from the fact that rapid organic growth of the type experienced in nascent industries had virtually ceased in the USA, thus prompting corporate interests to seek new ways to maintain profitability.

The reality is that in an advanced economy most opportunities for profit are already exploited, thus there can be no further windfalls in excess of normative growth. Capital settles in, so to speak, and it's owners must get by with the natural rate of return on matured assets. Two avenues for further profit exist in this situation. Expansion of basic research translating into greater efficiencies, or labour arbitrage based on the disadvantage of poorer nations. In simplistic terms, Kennedy's space program vs. Reagan's deregulation and free trade.

That the US chose the second path speaks not only to how closely the political class has aligned itself with the interests of big money, but also how far the population at large has wandered from the founding principles of the nation. I believe those ideals are still taught in school, but whether anyone still believes in them, much less has the courage to stand up, remains to be seen.

ebear