Monday, Mar 04, 2013

Tax? That's not for us...

The Atlantic: Corporate Profits Are Eating the Economy

Corporate profits have soared, in the last decade especially, particularly because of three things: Globalization has pushed down the cost of labor available to multinational corporations; technology has allowed companies to make more with fewer workers, in general; and Big Finance has gobbled up the economy, as the banks' share of total corporate profits has tripled to about one-third since the middle of the last century, according to Evan Soltas.
No wonder the gap between the top one per cent and the rest in widening, year on year. What happened to Maggie Thatcher's "trickle down effect"?

Posted by stuartking @ 08:42 PM (1781 views) Add Comment


1. nod2glod said...

Not so sure about this one. Why do all jobs have to be provided by large corporations. Maybe if people were more hungry to work and succeed then they would be able to find a job or create a business. If big corps were creating so much stuff, why aren't we all flush with everything we need and want with perfect services etc.

Also globalisation is a good thing, poor people in other countries should be able to compete with people from 'rich' countries. There isn't anything special about people from the developed world.

Maybe one of the issues is that people don't need to work in the developed world as they can live a better lifestyle than people in the 3rd worls and the leasure of the taxpayer. Therefore the jobs are going to those who will work.

Maybe government should stop stealing and funneling the money to the large corporation through their lobbying efforts, to banks and land owners.

Then maybe we will see a reduction in the pay of 1% - 99%.

Or we could just keep doing the same, up the taxes, so corrupt governments can continue to more of what they are doing now. The government is the problem, don't look to it for solutions.

Monday, March 4, 2013 08:52PM Report Comment

2. mark wadsworth said...

Trickle up economics, that's what it's all about.

Monday, March 4, 2013 08:59PM Report Comment

3. nod2glod said...

an total tax rate of >50% is not a trickle.

Monday, March 4, 2013 09:04PM Report Comment

4. stuartking said...

Globalisation would be a good thing if the workers in those developing countries were given fair treatment by their employers - at least some of the time they are not and are employed in conditions and for wages that are little more than modern-day slavery.

Regarding taxation, there seems to have been a drive - at least over the past 20 or so years - for countries to compete against each other to provide to lowest taxation for companies. That's all very well and good if those companies exhibit a social responsibility not only to their workforce but the community in which they operate. There are few companies that do this but mostly they divi up their profits in ever higher salaries and bonuses for those at the top, while their staff face stagnant incomes - the gap between directors pay and average employee pay has widening exponentially over the past few years and has been well documented.

You suggest people start their own businesses. The entry costs to many sectors are too high and, in any event, the larger companies out there often engage in anti-competitive practices which, even if you were to eventually succeed, don't exactly allow a level playing field.

Not all governments are corrupt and those that are really don't need to be. That's down the electorate - however, I do accept that as far as this country is concerned, the majority are more concerned about who's winning X-Factor; whose shagging who in the entertainment world, or the latest Premier League transfer gossip and that's reflected no only by television news but also by the most-read newspapers. Poor education and a lack of critical thought has a lot to do with it.

As for the banks, they still need reigning in but where's the will from our present government? I note Osborne will be in Brussels tomorrow to try to persuade the EU not to put a limit on bankers' bonuses.

Monday, March 4, 2013 09:14PM Report Comment

5. libertas said...

Na ha, TAXES and DEBT are devouring the economy!!!!!

What we need are MORE CORPORATE PROFITS and emulating Ireland's favorable tax rate would be a great start.

Monday, March 4, 2013 09:42PM Report Comment

6. stuartking said...

Libertas: With no tax and no government, can you explain what your world would look like, how it would function? I'm genuinely interested in how you see it working out.

Monday, March 4, 2013 09:46PM Report Comment

7. nod2glod said...

@6 do we really need a socially dominate ruling class telling us we have to give them 50% of our labour?

Monday, March 4, 2013 09:51PM Report Comment

8. greenmind said...

Look here for an explanation of the cause of these startling trends:

Monday, March 4, 2013 09:52PM Report Comment

9. stuartking said...

@7 Are you advocating no government and no taxation too?

@8 Some good quotes in there, Greenmind:

Abraham Lincoln:

"The land, the earth God gave to man for his home, sustenance, and support, should never be the possession of any man, corporation, society, or unfriendly government, any more than the air or water, if as much. An individual, company, or enterprise should hold no more than is required for their home and sustenance.

"All that is not used should be held for the free use of every family to make homesteads, and to hold them as long as they are so occupied."

Agnes de Mille:

"We have reached the deplorable circumstance where in large measure a very powerful few are in possession
of the earth's resources, the land and all its riches, and all the franchises and other privileges that yield a return. These monopolistic positions are kept by a handful of men who are maintained virtually without taxation . . . we are yielding up sovereignty."

They'd be shaking their heads now to see the mess we've got ourselves into.

Monday, March 4, 2013 10:04PM Report Comment

10. stuartking said...

Benefits of land value tax, from article linked to by Greenmind:

Pages 47-48

A Virginia Polytechnical University study of Pennsylvania’s land value tax (rent capture) cities found that the combination of lowering taxes on buildings and raising them on land values results in a measurable, significant increase in building values genera ted. The stronger the shift, the more the built environment improved.

Other significant changes detected in similar studies of this policy indicate that:

Taxes on the majority of owner-occupied and rental homes are reduced

Construction and rehabilitation of residential and commercial buildings are stimulated

The serious escalation of housing prices and housing rent experienced by most United States cities was averted in these Pennsylvania
cities because housing stock expanded.

Central business districts were revitalized because they attracted greater private investment.

More efficient land use resulted as a city’s idle lots and underused buildings were put into productive use; this in turn reduced the
pressure for costly and environmentally harmful urban sprawl.

Monday, March 4, 2013 10:17PM Report Comment

11. hpwatcher said...

Sorry folks, but nu-Labour did more to create that situation than any other government previously or any other government in power. The full horror of what they did is only just becoming apparent.

Tuesday, March 5, 2013 06:59AM Report Comment

12. libertas said...

God teaches us in the Ten Commandments to not covet thy neighbors property and to not steal. This Socialist perspective represents wholesale coveting and this Socialist society commits wholesale theft.

God also says in the Second Commandment that he is a jealous God, that his wrath is visited upon the third and fourth generations which turn away from him. Applied to the above Commandments it is easy to see why, even for those without faith. Coveting and theft destroys the human incentive to produce since if your production is taken away, you simply stop producing, aka Ayn Rand's novels.

What the Commandments state is that the third and fourth generations suffer harshly. We are coming to the third and fourth generations of Socialism, and we see our society being ripped apart financially as the economy fails to sustain human needs. Why did God not mention the fifth and sixth generations? Because, I believe, the assumption is that they will not exist under Socialism. Indeed, that is what we see in the Soviet Union, in Cambodia, Pol Pot's China. Many are saved, but many are perished, and certainly, the old order collapses as God predicts.

It is time for folks to find religion and understand that Socialism, in turning away from God's moral code, by institutionalizing theft and envy is a seed for societal destruction and is akin to worshiping the false idol of the State. Wake up people and understand that you should not rely on the State but should seek the gift God has given you and seek to express it in this world to help yourself and others. That is the true route to economic salvation. Withdrawing consent from the Socialist system and seeking, rather than dependency on the State, independence in your own God given gifts and talents.

Tuesday, March 5, 2013 07:38AM Report Comment

13. stuartking said...

@11 - Sorry folks, but nu-Labour did more to create that situation than any other government previously or any other government in power. The full horror of what they did is only just becoming apparent.

Then it's about time things were put right. But can you see the present government doing that or will it be a case of same old, same old.

Tuesday, March 5, 2013 10:02AM Report Comment

14. nickb said...

It's a myth derived from pie in the sky neoclassical economics that globalisation is a good thing. I'm surrounded by people at work who can not look after their elderly relatives because they live abroad. It also has a downward effect on wages and leads to competition to cut the public sector to attract investment - as was the intention. Whole regions can be deindustrialised at a stroke when capital takes flight leaving orphaned communities in their wake. Think Detroit. How can this be a good thing?

Tuesday, March 5, 2013 10:57AM Report Comment

15. stuartking said...

@12 Libertas: I think you must have posted on the wrong site in error. Try this one:

Tuesday, March 5, 2013 11:31AM Report Comment

Add comment

Username   Admin Password (optional)
Email Address
  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of
  • Please adhere to the Guidelines

Main Blog | Archive | Add Article | Blog Policies