Quote:
Originally Posted by cttransplant85
The assumption that capital isn't mobile. Which is why it's best to just not be hostile to capital investment to begin with. If a state creates a very hostile business environment like Connecticut or Illinois capital will just leave and go to friendly environments in Texas or Florida. Or if the United States is hostile to capital it will just go to friendlier environments in Mexico or Singapore. This is a major flaw, we're essentially in a global competition for capital. Say we became a socialist country It may work initially; until capital just leaves, then we all become poor.
|
And yet people who live in countries which can be called social democracies have a higher standard of living than we do and they have no problems innovating and exporting.