Glob­al­i­sa­tion and the flight of cap­i­tal

The Guardian - - JOURNAL LETTERS -

Nikil Saval writes that “Glob­al­i­sa­tion could take place in ser­vices, cap­i­tal and ideas … but what it meant most of­ten was mak­ing it cheaper to trade across bor­ders” (The great glob­al­i­sa­tion back­lash, 15 July). We hear no more from him about cross-bor­der move­ments of cap­i­tal. When I stud­ied eco­nom­ics in the 1950s we spoke of “cap­i­tal flight” as a ma­jor cause of eco­nomic stag­na­tion and reg­u­la­tory cap­ture. The rich in most of South Amer­ica ap­peared to be free to in­vest their win­nings in US equities to the detri­ment of their lo­cal in­dus­tries. My pen­sion fund in­vests more abroad than in UK equities. Am I com­plicit in a mod­ern ver­sion of cap­i­tal flight? David Cham­bers Stroud, Glouces­ter­shire • The main driv­ers of en­vi­ron­men­tal de­struc­tion (Earth faces sixth mass ex­tinc­tion, 11 July) are over-pop­u­la­tion and eco­nomic growth. Over-pop­u­la­tion is caused by poverty. Eco­nomic growth – seen by most as a good thing – is needed only to ser­vice debt. This was pointed by CH Dou­glas’s So­cial Credit move­ment in the 1920s and more re­cently by EF Schu­macher and oth­ers. Al­low­ing banks to is­sue 97% of money as debt is at the heart of the prob­lem. Chris Hughes Leices­ter

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