Billionaire entrepreneur Mark Cuban is raising concerns about a trend he thinks could hurt the U.S. economy in a big way: American investors increasingly looking overseas to cut costs.
“Insane” Strategy Could Undercut U.S. Innovation
In a recent Bluesky post, Cuban called out what he sees as an emerging shift in global investing. More and more so-called investment experts are urging people to diversify their portfolios beyond U.S. borders, including into international stock markets, private companies and startups.
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Cuban says this isn't just about spreading risk—it's also about saving money. He warns that investors are now looking to export talent and funnel money into startups in countries where labor and operational costs are a fraction of what they are in the U.S.
“It’s possible to export your smartest people, hire overseas, and fund their business at a fraction of costs you face here. Insane,” Cuban wrote.
He believes that trend could result in fewer opportunities for U.S.-based innovators and entrepreneurs as capital flows elsewhere. Bottom line is that instead of helping the domestic economy, as Trump's tariffs were supposedly meant to do, U.S. money could end up fueling business ecosystems in other countries.
Tariffs, Layoffs and Economic Pain
Cuban’s comments come as he continues to criticize President Donald Trump's latest round of tariffs and aggressive government spending cuts. In a recent post, Cuban said these policies have already pushed companies to panic-buy inventory ahead of tariff deadlines, tying up cash that could have been used for growth or hiring.
“That’s cash taken from being able to invest or hire,” he wrote. “In fact, they probably cut costs and jobs as a result.”
He added that if the tariffs stick around and the Department of Government Efficiency keeps slashing federal jobs and funding, the economic fallout could be worse than the 2008 financial crisis.
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“Shock and Awful” Policy Moves
Cuban isn’t against smaller government, but he slammed the current approach. “Trying to cut the size of government… and cutting a lot of people for better or worse, comes with the territory,” he said on “The Lincoln Project Podcast.” “But if there’s no plan behind shock and awe, it’s just shock and awful.”
He pointed to real-world consequences, such as job losses in small towns where government agencies are major employers. He also criticized recent Social Security changes, which require seniors to confirm their payments online. “What an amazing back-door way to cut payments! Gonna be some upset seniors at town halls!”
He believes the current economic strain is a direct result of campaign promises becoming policy—and he's urging voters not to be surprised when those decisions hit home.
For Cuban, the issue isn't just about policy. It's about what kind of economy the U.S. wants to build: one that invests in its own people, or one that outsources talent and opportunity in the name of cutting costs.
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