May 21st - Of course they will evade tax

Seems that the tax evasion issue has come to light at a good time for me as I’m trying to understand what’s going wrong in the world.  I’m going to backtrack to see if I’ve got it right and if (as I’m beginning to believe) tax evasion by huge companies was always  inevitable.  A quick look at how capitalism has evolved to overcome obstacles to profit and growth might throw some light on the inevitability of tax evasion:

Need cheap labour then open factories in poor countries and encourage free migration of low-wage labour …

Need more goods moving round the globe then build ever bigger container ships and trucks and break down all trade barriers …

Need big customer base then create a consumer culture which sees  material consumption as the secret of a successful life

Need international movement of money then change the rules and open up the ‘casino’ to financial services …

And finally - need a low-tax business environment then run your business from a low tax country

Perhaps dear old capitalism has finally gone a step too far …

The customer base needs to earn sufficient to buy. Henry Ford saw that over 100 years ago when he said that to sell cars he had to pay his workers enough to buy them.

Customers are only able to buy beyond their basic needs (the lifeblood of consumer capitalism) if they live in a ‘developed’ country where the state has provided a sophisticated infrastructure which is PAID FOR OUT OF TAXES. Once tax revenue goes down the infrastructure begins to collapse, as is pretty obvious just now in the UK, jobs are lost and customers can no longer afford to buy. For some time credit was offered to keep consumers buying but since the financial crash that’s no longer available.

Have I got it right?  Companies pay tax so that the state can provide the framework within which customers thrive and carry on buying.  Mr Starbucks and Mr Amazon perhaps you have got a little too big for your boots and should think again!