One of Houston’s larger companies and the world’s largest onshore drilling company, Nabors Industries, recently became the latest in a series of incorporating relocations of U. S. companies to offshore tax havens, Bermuda in this case. I have been struck by the responses to this trend from labor unions and public officials who seem to believe that they can direct public policy to repeal the laws of the fungible nature of capital throughout the world. Again, capital goes where it is welcomed and stays where it is well treated. This applies to states as well as to nations. I have written before on the “inevitability of marketization” (August 2000) and the futility of government attempts to reverse globalization with such pipe dreams as the Berlin Conference communiqué of two years ago which stated that globalization “should not just be allowed to happen” and that there should be a “return to politics ahead of economics”. The old politics can be obstructive and are usually counter-productive, but will lose in the end to tax and trade policies that are accommodative to the competitive pressures of global capital mobility.
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