This is not just a U.S. phenomenon, it should be pointed out. In India, for example, one study has noted that that nation has lost billions of dollars, since independence from Great Britain in 1947, when wealthy industrialists siphon their profits and place them in industrialized nations and other safe-haven jurisdictions.
If the argument is that taxes are high (and if that is relative), which is what lead folks to engage in tax evasion, that is one thing.
When lower tax rates, for example, at the corporate level to attract businesses are actually a temporary diversion (and temporary is relative as well), it shifts the allocation of capital from one jurisdiction to another.
And that capital searches for even-friendlier terms that it can live with and such is the nature of global capital flows.
But there is an intangible side to the story of the modern-day movers and shakers.
Some of those who are captains of industry do not actually believe in investing their returns in the locale that they first started making their fortunes.
They want to be world players, not just local and regional players. They tend to get bored with their surroundings and desire world acclamation and respect that they, too, have arrived on the global stage.
Why is the business world any different from the “other worlds”?
In sports, if a local team does well, the first thoughts are to do just as well or better regionally, and then even internationally.
In politics, too, if an individual does well at the lower-level of policy-making, the first thoughts are to do well or better on a broader level in a bigger election contest.
In personal relationships, as well, some men — and women — are not satisfied with one life partner and some are not even satisfied with one partner at a time.
Finally, the point must be made that what drives men and women are not any different than what drives corporations. In an unprecedented time in the history of the world, those who live worlds apart can team up on a moment’s notice to arrive at ways at how they can drive their businesses forward, conquer new markets, and hunt for new spoils. Governments, local and federal, have little control over those aspects of decision-making.
And some might say, elected officials are just pawns in this global scheme.
MATT PHILIPS
Mangilao, Guam
