The Global Economy

Thirty years ago this did not exist to the extent it does today. Two things have driven it, government policy and communicatons such as the Internet. As regards government policy, as in all foreign policy initiatives, there is a mixture of altruism and self interest. The altruism is in the sense that global markets and free trade can potentially benefit everybody and the self interest is in that, with the US being one of the best places to do business, it would benefit more than most. Jobs and investment would flow more to the US. However the self interest part is a double edged sword, it only works to the extent that the US is one of the best places to do business. If other countries up their game, which they have, we could find the jobs and investment flowing away. What in effect has happened is the world is more slippery and well lubricated, jobs and investment flow easily and quickly to where best business climate is to be found. What this means is that impediments to business, that we got away with in the past, will now lead to jobs and money fleeing the state. Taxes without services is an impediment to business like no other. Taxes that result in services are fine. Services include education, infrastructure improvements, research and development assistance, all things that make a state attractive to business. However Connecticut has a good line in taxes withour services. Prison is not a service that business or the general public can use. Chasing drug dealers also is not a service. That is why these policies must be reformed now, whereas in the good old days we could have and did get away with it.