In
an effort to mitigate all the good effects of last night’s free trade deal signed
for Pacific nations, world governments are moving on their
draconian plans to stymie the world economy by adding as much cost as they
can to those firms we would, as individuals, otherwise want to trade freely
with. The below comment to this NBR piece indicates the source of the problem -
statism has won over freedom:
#1 by norman godden 16 hours ago
About time too. I have observed so many multi-nationals reduce profits
here by loading up related party debt and unrealistic management fees.
I
replied to Norman on that thread, but as ever NBR’s moderation works to stop
the free flow of ideas, and it never made it up to the site. This will have
been due to it falling through the cracks of their creaky moderation system
which sees comments lost, not because of content. As near as I can
remember my comment it was as follows – well, expanded:
Goddamn Godden. These firms were operating their tax
affairs in our best interests, preferring to use their profits for innovation
and lower prices to benefit customers, rather than increase the size of world
governments.
Tax is a cost in (at least) two ways:
First tax is a cost to business which will be passed
on in higher prices for goods, and via less innovation, less choice. Indeed, when
New Zealand soon moves to add GST to all imports – unrelated to this crackdown,
but the same impetus - I can see some overseas firms who won’t find it
profitable to trade here, not bothering to. So our cost of living will rise, as
the quality of life we’ve had through global trade declines.
Second, the money that is extorted from consumers –
as they are always the one who pay corporate income tax as well as sales tax – is used by
governments that have grown to half the size of their (planned, centrally
dictated) economies, to grow themselves yet further via dependence to the
welfare state, undermining always the self-reliance required for freedom and
prosperity, and the entrepreneurial spirit rewarded by laissez faire capitalism
that has given the West the best standard of living of any previous
civilisation.
Norman’s comment is representative of the statist gestalt
that has won in the West, capturing Left and Right, which produces from our
state school system sheeple who would vote for abattoirs if they thought they
might get a free lunch on the way to the trucks.
Footnote:
I’m
moving further away from Ayn Rand on copyright. I will always hold it as a
valid right, but a bad provision of the TPP (Trans Pacific Partnership) – other
than that there are so many provisions and true free trade should be agreed in
a single sentence (so this is cronyism on top of free trade) – is the increasing
of authorial and music copyright to 70 years after death from 50, as it is in
the US. This is retrograde as far as artistic
use is concerned. I believe copyright should die with the creator.
Further Reading:
