When labor and capital have the ability to escape bad policy by moving across borders, politicians are more likely to realize that it is foolish to impose high tax rates.
British industry has managed largely to escape the effect of the new policy on carbon emissions, which involves a levy introduced last year and tradable quotas.
Yet the progressive economic policy-making coming out of Washington today rests on the futile attempt to escape the corporate cycle of life that lies at the heart of capitalism.