Hurrah - excellent discussion here - good (if completely wrong
) posts @Scayde
Well, I was going to make Fable's point about taxes - @Scayde, you seem to feel very strongly that taking money from you is a serious violation of your rights (although it is not really a violation of Human Rights)...but I am curious, does being taxed a quarter of your income every month provoke as passionate a reaction as you have posted here?
Anyway - here are my thoughts on the matter:
'Trickle-down' economics does not work - and I think that this is immediately evident to anyone who looks at the world at the moment. Scayde, you must realise that the countries in which 'trickle-down' economics are present are the worst off countries in the world. The countries in which capital is injected via foreign corporate presence are the countries, not only in which people are hungriest and most needy of public services, but they are also the countries which have
no hope for the future.
Argentinian people will certainly not benefit from selling their country's governnence (possibly made up word) away to the IMF, and here is my argument:
To provide unprofitable public services for the people, the people have to be taxed. AIDS treatments and infrastructure never ever make money.
When Big Business, the IMF and WB etc move into a country, it is because the country is desperate for something to base their economy on, and need help.
However, when this happens, the competition is reverse to how you described it when you said:
We will allow 3 of you to build factories , These are our consessions. Protection of your patents, favorable tarriffs, freedome to conduct your business without undue government involvement....but these are our demands...You will pay X amount in taxes to go for community improvement, you must pay our people at least this x-much money,They will have x days off per year, they will not be required to workmore than x hours per week, they will be entitled to overtime. They will be entitled to advancement, there will be no discrimination based on race, religion, ethnic persuasion, sex, marital status, physical or mental disability, as long as they are capable of performing the job, the company will provide suitable accomodation for any non essential handicaps, and essential ones if an employee can be retrained after an injury. The company will assume liability for workers injured on the job. We expect health care benifits, a modern clinic, an on site daycare, a community school, an adult learning program, public sanitation acording to international standards in the communuity you choose to build in and a 10 year contract not to move or relocate the plant for anyreasons other than catastrophic loss..
Competition takes place when somebody has something that somebody else wants - But you think that the competition is among big business, whereas actually, it is among the desperate countries. The capital is 'the thing that somebody wants', and the governments of Argentina, Venezuala etc are the people who want it. So the competition is among
who can debase themselves and allow business to make the most profit.
AIDS treatments and infrastructure never ever make money.
This is why governments sign contracts with the IMF which, rather than looking like -
'You must spend a certain ammount on public services each year, and pay us taxes'
actually look like -
'We will reduce taxes and public spending a certain ammount each year, and allow you unlimited political freedoms'
Hence, countries who allow corporate capitalism in through death's door are not ensuring anything for the future, other than their hopes for democracy and freedom being sacrificed to profit.
And the logic is this - as a country is taken over by Free Trade, the process which is going on is not 'trickle down', it is 'leech up'. Because the money is what is needed, the wielder of the money is the wielder of the power, and, as the wielder of the money is the one with the power, the wielder of the money is the one who decides upon what conditions the money will be granted.
.
Now, if the wielder of the money is motivated by profit, they will stipulate circumstances of maximum profitability, which invariably means less democracy (as democracy leads to the masses' needs being provided for, which costs money. AIDS treatments and infrastructure never ever make money.), and less taxes and public spending. I hope that this is undeniable, given the first premise.
But if the wielder of the money is motivated by love for common people, they will stipulate circumstances in which the people are best provided for, which would mean higher taxes, better working rights, and more democracy.
What this boils down to is this:
Are Multinational Corporations motivated by profit, or love for common people?