CAPITAL HAS BECOME EXTREMELY MOVABLE.
Technology and that ability to move at costs and speeds not
imaginable 30 years ago has facilitated the ability of capital
allocators to constantly seek the best return for that capital,
limiting the ability of Governments to impose additional costs on
that capital while labour remains less mobile and is therefore the
recipient of such costs.
The speed at which companies are reallocating their capital and
choosing the most efficient jurisdictions continues to increase and
has become a subject of attention in the mainstream media. Looking
at the other production input - labour - the picture is completely
different. Immigration restrictions as well as cultural and
language barriers continue to exist today, and while the cost to
move millions from one side of the planet to the other has
collapsed to insignificant amounts, the cost of moving people in
terms of money and time has improved but not to the same level.
