The Illusion of Capital Flight: Understanding Economic Interdependence
Whenever progressive taxation of the wealthy is debated, a familiar argument emerges: "The rich will simply leave." Indeed, we do see some affluent individuals relocating to lower-tax jurisdictions. However, this narrative overlooks a fundamental reality—the capital base of these individuals is deeply rooted in their home countries. Capital's Roots Run Deep Wealth does not emerge in a vacuum. Trace any capitalist's fortune back to its source, and you will invariably find it anchored in their nation's economic and social systems. The foundations of capital formation: - A well-educated, high-quality workforce - Established legal frameworks and their enforcement - Infrastructure: roads, ports, telecommunications - Stable security and social order - Consumer markets with purchasing power - Business networks and relationships of trust All of these have been built through decades of public investment and social accumulation. Capitalists flourish on this fertile soil. Si...