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by haser_au
3472 days ago
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To some extent, this happens today. In countries like Australia and the UK, companies that pay their fair share of tax and employ a lot of people are viewed upon favourably by government. For instance, the entire automotive industry in Australia. The problem becomes when globalisation occurs, and those companies are no longer competitive against foreign car companies. The Australian government tried to bail out the automotive industry, twice, and it still collapsed. There are no longer any cars manufactured in Australia with Holden (GM), Ford and Toyota all leaving in recent years. Yes, you can introduce metrics of number of employees (direct and indirect), tax paid per employee, etc etc. But consumers won't pay double just because the car created a job in their country. |
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If a global company is only selling imported product produced elsewhere shouldn't they be paying higher taxes which will make the play ground even. I don not think they would like to lose access to a market just because taxes are higher. After all they too need consumer to sell products too.
In current state globalization is able to produce cheap services by exploiting worker from both sides of globe developed and developing. You can see that in Amazon(developed) and Flipcart(India). In the trend continues purchasing power of masses will erode to a point of no return.
Secondly true costs are hidden so if a company is selling cheaper cars by not using proper waste and environment management. They are essentially discounting the future to provide cheap services today.
And you are right this is not possible without having a global governance with a long term view.