Monday, August 5, 2013

The King, The Capitalist, and The Act Of War

A representative comes to a small south pacific island community to petition the King for the authorization to set up a commercial fishing business for his large international company. The king asks what the benefits of letting him set up business will bring to his people. I offer to pay taxes on the catch. "I will offer to pay your fishermen more than they make in a day already." , The rep explains with his advanced techniques, he will be able to offer the fish at market for less than the current price. The king thought for a moment and said. “I will give you 2 hours to get off my island or I will have you arrested for an act of war against my people” The business rep was confused. “An act of war, I bring nothing but offerings of good fortune to your people as I just explained."

    The king explained, “many of my fishermen have fished these waters for more than 15 generations. They are free to catch what they need to feed their family and sell at market to get their other needs met. The choice and decisions are driven by their personal wants and needs. Now you want to come in and reduce the price they will get at market by selling your lower priced fish. They will have to work harder, compete against your technology, and spend less time with their family to get the same results. Unable to compete with your technology and marketing tactics, many may feel the pressure to join your operation where they are now subservient to you. You will require them to work longer hours for you to have a product to sell half way around the world. They will earn a better wage which will cause their purchasing power to go up and create a disparity between the company fishermen and the other members of the community. The price the company fishermen are willing and able to pay for all other goods will rise and thus cause the price to rise. All of the other citizens will feel a negative impact. As my community grows dependent upon your company, you will use this to leverage lower taxes and leave my people with reduced schools and medical access. The lower price of fish will cause fish to be more affordable than the chicken, pork, or lamb that are also available to my people. Those that raise that livestock will find it harder to compete in the market. They too will have to work harder and go without. This will eventually and progressively cause a separation. That disparity will surely cause a rift amongst my people. That rift will cause unrest and possible civil war among my people. AS the place becomes too hostile for you to continue your operations, you will withdraw your business, leaving my community that had grown dependent on your technology, without traditional fishermen and economically devastated. 

    So, as I said, your offer is an act of war and you have now only an hour and 50 min to leave my kingdom. “

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