Thursday, May 16, 2013

Profitable Parasites

So the Commons Public Accounts Committee has decided that Google is 'doing evil' with regard to its evasion of UK taxes, despite the level of profits it makes from UK customers.  Well, no shit Sherlock.  Google and a whole load of other multinationals who seem to want to trade here and take our money, but not give anything back.  But, of course, Google et al will tell you that they are not actually doing anything illegal in exploiting legal loopholes which allow them to claim that, for instance, their UK arm is actually based in Dublin and therefore not subject to UK taxes.  (Are they aware that Dublin is the capital of Ireland, which ceased to be part of the UK in the 1920s - hence the tax situation - so that we in the UK find it very confusing that Google UK is apparently based there?)  But there's a subtle difference in 'not doing anything illegal' and actually behaving within the conventions of the law.  It wouldn't be so bad if these companies were using the huge tax-free profits they make to pay their workers great wages and provide them with excellent benefits and working conditions.  However, if even half the things I've heard about Amazon's UK distribution centre are true then this most certainly isn't the case. 

Amazon have, allegedly, been highly resistant to the unionisation of its staff.  Not surprising in view of the fact that they are reportedly treated like criminals, subject to searches before leaving the building just in case they might have stolen any of the merchandise.  Which obviously they are going to do because they're horrible low-paid working class people on casual contracts - clearly borderline criminals.  For a long time the likes of Google and amazon were able to deflect virtually all criticisms levelled at them thanks to their carefully crafted public images - customer-friendly outsiders helping out us little guys against the established corporate giants.  The trouble is that, as the whole tax issue has highlighted, they are now the established corporate giants, ruthlessly exploiting their dominance of their markets to smother competition and maximise profits.  Mind you, there are still idiots out there who defend them, who refuse to accept that they aren't really helping the customer any more, just themselves. 

However, for many, the mask is slipping and there are increasing calls for something to be done to curb these companies' more anti-social activities.  National governments, of course, have the power to do something with regard to the tax and working conditions.  The problem is that the UK's poor excuse for a government is unlikely to do anything other than talk about the need for action.  They find themselves caught between public demands for regulation and the fact that these multinationals are practising exactly the kind of capitalism they've been encouraging.  That, after all, is their economic 'big idea' - to transform the UK into some kind of giant sweat shop, so as to better compete with the likes of Bangladesh.  To do this, obviously, they need to get rid of all those silly constraints like health and safety, human rights and trade unions and corporate taxes which put off inward 'investment' by the likes of Google and Amazon.  Sure, they create jobs, shitty jobs, but jobs nonetheless, but they certainly don't create wealth - not for their host countries that is, they make sure it is all siphoned away rather than invested locally.  Profitable parasites - the modern capitalism!

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