As illustrated by the data in footnote 1, U.S. gross foreign borrowing is much larger than net foreign borrowing, as gross borrowing must be sufficient to offset not only the deficit in current payments but also U.S. capital outflows. 4  This definition of capital investment ignores many less tangible forms of investment, such as research and development expenditures.
It also ignores investment in human capital, such as educational expenses. Using a more inclusive definition of investment could well change our perceptions of U.S. saving and investment trends quite substantially. I will leave that topic for another day.