Capitalism: the movement of capital
Have you ever heard of Ann Landers, Hillary Clinton or Bill O'Reilly? If so, then you've heard of Creators Syndicate.
Creators Syndicate is under assault by the the City of Los Angelas, CA to feed its budget deficit. The city is running out of money and arbitrarily changing tax classifications to raise more money. Read more about the drama in the WSJ, July 10, 2009 edition:
The business climate is worse than the air quality.
Capitalism by definition is a social - economic system where private investment and profit motive are a foundation for societal progress. In a free society, like the USA, capital can and does move to its most profitable return on investment. This movement can be city to city, state to state or country to country. About 20 years ago the business / ministry called Focus On The Family moved out of California to Colorado Springs, Colorado to lower their tax burden. Creators Syndicate is considering a similar move.
Private enterprise moves to the lowest cost of capital. These costs include, taxes, borrowing, social stability, security and more. The change that the federal government makes has intended and unintended consequences - as do city and state government decisions.
And in a free society, private investment, private industry, private capital will move to its highest return on investment - be it in another city, state or country.
Therein lies the political and philosophical differences between conservatives and liberals: are the consequences of our various political decisions improving or hurting America?Michael Ritsema i3 Business Solutions, LLC