This recapture of the flow of rent and monopoly earnings, the income created by social progress and the public domain, is so large that governments need not tax labor, or even industry. The country that does this will give itself a great competitive advantage in international trade and investment. My colleague, Ted Gwartney, will tell you of our work in Russia, where the American globalists have had their own way and created a model of how not to develop. The task is not only to attack globalization, it is to show the way out, to propose a policy alternative, a counter-strategy. There is such a thing as market socialism.
Governments can shape the market to encourage productive investment, and tax away what is parasitic.
Pinochet revolution by the neoliberal Chicago Boys. The kind of globalization we have seen since 1980 has been primarily parasitic. It is like a tumor, a tapeworm on the economic organism, not the organism itself. But host-country governments can recapture the economic rents that global financial investors seek. This will leave parasitic investors holding an empty bag.