Capital strike is the practice of businesses withholding any form of new investment in an economy, in order to attain some form of favorable policy.[1] Capital strikes may arise from the determination that return on investment may be low or nonexistent or from the belief that by withholding investment certain political or economic changes may be achieved—or from a combination of the two. Capital strikes can be economy-wide, or take place in a specific industry.[2]
Capital strikes may sometimes result when governments pursue policies that investors consider "unfriendly" or "inflexible", such as rent control or nationalization. The term can refer to a capital strike by a single investor[3] or a large group. Capital strikes are commonly invoked as the business-owner/shareholder equivalent of a labor strike, and are often tied to the concept of capital flight.[4] Capital strike was originally a derogatory term,[5] but has been used more neutrally in modern politics.[6][7]
- ^ Young, Kevin A.; Banerjee, Tarun; Schwartz, Michael (2018). "Capital Strikes as a Corporate Political Strategy: The Structural Power of Business in the Obama Era". Politics & Society. 46 (1): 3–28. doi:10.1177/0032329218755751. ISSN 0032-3292 – via SAGE Publishing.
- ^ "Capital Strike". Shmoop. 2019. Archived from the original on March 11, 2021. Retrieved March 11, 2021.
- ^ Dane (February 20, 2011). "Foreign Investor Explains Capital Strike Against Chile". Brophy World. Archived from the original on July 19, 2020. Retrieved March 11, 2021.
- ^ Epstein, Gerald A. (2005). Capital Flight and Capital Controls in Developing Countries. Cheltenham, United Kingdom: Edward Elgar Publishing. p. 6. ISBN 9781781008058.
- ^ Frank, Thomas (April 2013). "To Galt's Gulch They Go". The Baffler. Archived from the original on September 21, 2020. Retrieved March 11, 2021.
- ^ Karlgaard, Rich (December 22, 2008). "Capital Is On Strike". Forbes. Archived from the original on September 25, 2020. Retrieved March 11, 2021.
- ^ James, Frank (September 15, 2011). "Boehner Lobs Supply Side Shell In Fiscal Trench War With Obama". NPR. Archived from the original on September 25, 2020. Retrieved March 11, 2021.