POV: Love and Labor Lost

By Peter Henry

What no one is saying is this: We need more jobs — and capitalism creates them.

It’s been said that capital goes where it’s loved.

In our Match.com century, investors’ options have multiplied now that more and more once-closed countries are opening their arms to welcome foreign capital. Today, for example, Prime Minister Narendra Modi actively courts foreign multinationals to “Make it in India,” a shift from years of fury over foreign investment; Mexico has become a more welcoming place to do business with millions of manufacturing jobs and thriving innovation centers.

But neither love nor economics is ever simple. We may be on the verge of a nasty breakup with capitalism. Why? It started with understandable outrage over income inequality. Think of Occupy Wall Street or French economist Thomas Piketty’s bestselling Marxist-revivalist tome Capital in the Twenty-First Century. Think also of the ire over corporate tax inversions — if a company considers merging with a foreign corporation and moving its headquarters outside the country, it gets vilified as “unpatriotic.”

Read full article as published in OZY

Peter Henry is the Dean of the Leonard N. Stern School of Business, Dean Richard R. West Professor of Business and William R. Berkley Professor of Economics & Finance.