Up until a decade ago the power of the federal state was the ultimate power of recogning as they controlled the strings, therefore all including business had to follow along like it or not. Yet the world has changed and government hasn’t here is why we have many of the social problems of the day. As think about it this way, back in the say the 70’s and even to the 80’s if a company did business globally it was a minority share and typically conducted only as a franchise of the parent. Meaning it had to bend to local (country) laws and implied social norms.
However fast forward throughout the 90’s and past the turn of the millennium where we find a different world and while buck Rogers is missing the fact companies have out paced government isn’t. What you say, commercialization has won out over taxation you say? Well, yes as look at it this way, Apple Computer now has more cash and reach than the US government! So who needs nukes when you have these things as this is about the only thing which (let’s hope) they don’t have.
Ok, did what I just write sink in? Yes the multinational companies of today have more reach and money then the Governments they once operated under do as for obvious reasons Governments have remained “regional“, yet multinational companies have out paced (grown) them by going global. So if a Government does something which one of these behemoths don’t like, they are no longer landlocked subject to the domain of that authority. (note to governments: put away the stick and get the carrots out as you need business more than business needs you)
Need a case in point, SOXs, yes the Sarbanes Oxley Act, one of the worse pieces of legislation to pass through congress and the killer of the US economy as did it have good intentions? Of course, yet when business saw the negative effect it was going to bring, they packed up and left American shores. Note, they didn’t go out of business and they still sell their products and services here. It’s just they have moved their crown jewels to what they believe are friendlier shores.
So who loses out on the this, yes the societies which are left behind, people in the for the first time in the history of the country [America] are seeing a jobless recovery, as how could that be as if people are not working, then where is the money coming from? Yes Virginia, while Santa Clause maybe imaginary so it seems is our current system(s) of Government is to as there is no longer that a hard link remaining between commercialization and taxation to fund all those soft social programs of the bygone years…