Appendix I

The following figure contains the Direct Foreign Investment (DFI) into the USA from 1995 through 2005. The figure further demonstrates the importance of capital investment in the US economy that eventually translated into the higher wages and ensuing tax revenues experienced in the late 1990s and early 2000s. Based on the 2001 CBO report, high DFI in the USA occurred because of poor opportunities abroad.

The Direct Foreign Investment is compared to the Venture Capital and tax revenue trend line and GDP trend line as displayed in Figure 26.

Because Figure 28 in the analytical review displays the correlation between the AGI gains and the VC investment, the following figure further demonstrates the significance of capital investment during the time period when significant AGI gains and tax revenue were experienced.

Figure i

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