Our governments, in turn, not only enforce property rights but devise the other instruments of public policy that balance market objectives with social ones. Poli cies intended to stabilize the farming economy can be seen as distortions of trade. Even regional economic development policies can be illegal forms of subsidy. In addition, global laissez-faire is undermining government's power to tax. Investors have been very adroit at playing national governments off against one another.
Low taxes are synonymous with good business climate.
But if governments can't tax or borrow, then the fiscal means to temper capitalism are also eroded. At issue is whether citizens can continue to opt for a mixed economy. In effect, citizens can still vote for governments, but governments are being systematically stripped of their power to temper capitalism or to pursue public purposes. So citizenship has less meaning. Moreover, the WTO is a stunningly undemocratic insti tu tion.