Slashdot Mirror
The Luck of the Irish Runs Out
theodp writes "Looks like threatening to take their ball and leave paid off for US tech firms. The Irish government announced plans this week to tap the welfare state and working class for much of the $20B in savings they've pledged to find over the next four years, but the austerity measures will not touch large businesses like Microsoft, Intel, Google, HP, Facebook, LinkedIn, and Pfizer, which created jobs and fueled exports in Ireland after being lured by low corporate tax rates. More than 100,000 Dubliners took to the streets to protest the bailout plan, calling for the Irish government to default on the country's debts, and demanding an immediate election. 'We should default,' said a retired union worker, 'the idea that the workers of this country should pay for the gambling of the billionaires is disgusting.'"
As usual, many people are quick to defend these pricks, saying that if it weren't for them, everyone would be out of a job. Yes, the economy is in their power. Calling that a mutually beneficial relationship sounds like Stockholm syndrome.
It's also a correct observation. We do have a mutually beneficial relationship with businesses, including corporations.
If your very survival depends on receiving a living wage from a corporation that can simply choose to go away if it is asked to pay for the infrastructure it also uses
This bugs me a lot. There's a zillion people talking about "infrastructure" in the comments, but I doubt most such government activity benefits rather than hinders business.
For example, every developed world country has a big public pension problem. Public pensions don't provide a whit of benefit for business. Instead they merely drive up the cost of labor and/or increase government spending. Yet corporations "use" this "infrastructure". Regulation is another net negative for business (especially the rules on how to conduct business such as hiring and firing workers), yet they pay for (that is, "use") it, both in taxes and compliance. Then there's a considerable amount of rent-seeking (mostly in the form of subsidies). Sure some businesses benefit from that, but it's collective harm for most business. Google doesn't take advantage of agriculture or aerospace subsidies.
Finally, I gather from comments that a big portion of the current Irish budget problem is debt for bailing out banks. Yet another activity that didn't benefit Google, but Google is expected to pay for.