The problem with capitalism is its strength; capitalism lets companies create new markets and temporary monopolies, creating wealth and jobs; however, these monopolies then try to keep their position as leader in the market at all costs, killing the competition and resorting to immoral activities such as tax minimization and salary freezes. Instead of sharing and paying a social part to contribute to society, they use all and every opportunity to reduce the tax and salaries they pay. If there is a way, they will use and abuse it.
Companies like Apple, Facebook and Amazon all use or used Irish tax laws to pay as little tax as possible. Starbucks did the same.
So markets then need managing and regulating. We need a way of forcing big players to contribute to the well-being of society, as they use the fruits of society to run their business. Health care, education and even defense are all paid through taxation, and when big companies avoid tax and then send a message to their investors that it’s an acceptable thing to do, the investors do the same and then finally, its those who cannot avoid the tax who pay more. People on low salaries and who work long hours have a higher tax burden than the big companies. The independent bookshop on the high street has to pay his tax, but Amazon does not. The independent coffee shop on the high street too. When people refuse to pay their share, then the result is a race to the bottom as others will say that the playing field is not level.
Free markets work when the economy is the same everywhere. Today, we have convergence but not equality. It’s not something that can be sustainable however; if companies refuse to contribute to society and the humans it holds. We have to stop hoarding our wealth and start sharing more. Pumping 15% of profit to investors is a ridiculous idea if we don’t pump 15% to the staff as well, and invest 15% in research and 15% in capital. That still leaves 40% for the owner.
Companies who refuse to contribute fully to society are the new slave drivers. They want their riches at the cost of society.