Belmont University

Is Anti-capitalism Growing?

There is a growing resentment toward business, according to a survey conducted by the Financial Times and Harris. From the Financial Times:

A popular backlash against globalisation and the leaders of the world's largest companies is sweeping all rich countries, an FT/Harris poll shows.

Large majorities of people in the US and in Europe want higher taxation for the rich and even pay caps for corporate executives to counter what they believe are unjustified rewards and the negative effects of globalisation.

Viewing globalisation as an overwhelmingly negative force, citizens of rich countries are looking to governments to cushion the blows they perceive have come from the liberalisation of their economies to trade with emerging countries.

What is most chilling about these findings, if they prove to translate into policy, is that they won't just hit big corporations and their executives. It never seems to work that way. Punitive taxes and attempts to redistribute the wealth will also hit entrepreneurs hard.

Say what you will about corporate greed, a solution that includes higher taxes will make the pie they are trying to redistribute much smaller. Entrepreneurial activity is much more vulnerable and reacts much more quickly to significant increases in tax rates, and entrepreneurship is the engine of the current global economic expansion.

Thanks to Jim Stefansic for passing this along).


Posted by Jeff Cornwall on July 23, 2007 05:46 AM |

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Comments

This whole concept of “the rich don’t pay their fair share” drive me crazy. The whole concept is so incredibly myopic. You can’t create more wealth by dividing the existing wealth. And by telling me that you’re going to take what I’ve worked to build and earn and turn around and give it to a person who isn’t even trying completely removes any desire I have to continue to produce.

China tried it, the Soviets tried it – both failed, leaving an even poorer lower class in their wake.

Milton Friedman (I think it was him) put it much better when he stated that the idea of “From each according to his ability, to each according to his need” essentially makes need an asset and ability a liability. Mostly because ability and liability sound good together.

Then again, I’m probably just heartless.

Birdied by: Nathan Ratcliff | July 23, 2007 11:00 AM

Having worked for the government in Huntsville Alabama, I have yet to see the US Government make something more productive OR profitable.

I recently read a book titled, “China, INC.” a little outdate but still an interesting read. It describes the impact that China and Globalization has had on the “average American”. China actually drove the cost of several goods down over a period of time, while the average income per capita of American grew. China holds several BILLIONS of U.S. Dollars in reserve that it uses to buy US Bonds, which in turn it uses to drive down the US Interest rates.

The only way I can see that Globalization will hurt the US is by our spending habits.

JG

Birdied by: Jim Greene | July 24, 2007 02:37 PM

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