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Dalfonso remarks:

Check the citations to make sure they are more factual. Citation 6 offers facts, but some sentences appear to have a bias. Obvious he is advocating for how he can get capital back in the game. You offset this however, by staying away from the bias material so good job doing that. All of the links were able to open for me.

Check the word play for this sentence Capital Strike was a term initially intended to be derogatory[5], but has at times been used more neutrally in modern politics[6][7]. Definitely the right usage it just might need to be rephrased.

Overall good paper I was able to access all the links, so no problem there. Great job on using the link tab as well. It gives me and others as your audience to click in if we don’t know or understand who or what something is.

Article Plans: updating and improving the Capital Strike Article

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(Note: on 2/22/2019 another user made improvements to this article but I believe there is still significant further work that can be done)

Introduction

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Build upon the existing improvement I made by finding a better sourced description of the "Why" and "How" of Capital Strikes.

Move the Ayn Rand Quote to "In Popular Culture"

Add blurbs

The concept being considered a counterpart to a labor strike.

The concept being tied to Capital Flight.

Examples

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Other user created list. Provide Allende Citation. Find more examples.

New examples if peer review deems necessary:

1970s Taiwan? (Further reading needed)

Allegations of CS in Venezuela?

Allegations of a CS in New York City?

Impacts

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How FDR overcame capital power.

How Mitterand responded to the supposed CS.

The impact of the capital strike and link to the overthrow of Salvadore Allende.

How Obama admin Responded.

Further found example results?

Conditions under which capital strikes are effective.

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What conditions lead to the success of capital strikes?

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Move Atlas shrugged here.

References

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Current and future sources.


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Article Evaluation: Note: not realizing this needed to be done in-sandbox I completed this assignment on the talk page of the capital strike article two days ago.

The evaluation left on that page said the following:

"Pardon me if I come across as know-it-all-sh, I only come by to evaluate and to provide ways I hope to, and would recommend, building out this article to make it as good as it truly can be. This article has a strong neutral tone, and provides the reader a reasonable, dictionary-level introduction to this topic. I would, and seek to, improve it by reformatting it into a more segmented project (similar to the article discussing labor strike actions), discussing the concept more in-depth, looking at a few examples through history, and possible responses to such action. I would also hope to improve and see improved the quality of the sourcing. Currently the two sources are a blog and an Independent article whose link currently "404s". The 2008 recession in the United States saw a fair amount of discussion of this topic in the press and academic journals, I would hope to utilize these articles in beefing up the article's sources. Thank you for your time. Jdicke16 (talk) 02:02, 10 February 2019 (UTC)

Upon further research, either this page plagiarizes Investopedia, or Investopedia is plagiarizing this page in their discussion of capital strikes. As the section of their capital strike article (sub-section Capital Strikes and Government) is word-for-word the opening to this article. I actually believe there is a chance Investopedia is doing the plagiarizing, as their page was most recently updated in June 2018, and this page has been phrased roughly in this manner since it's creation in January 2006. With that said, I cannot say for sure whether either party is at fault. Jdicke16 (talk) 02:45, 10 February 2019 (UTC)"


First Draft of Updated Article (template-article-used accurate as of 2/25)

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My revisions and additions will be in bold and Italics. With implemented changes underlined.

Capital Strike

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Capital strike refers to 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]

Examples

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It is difficult to determine with any certainty when a decline in business investment is the result of a "capital strike" against certain policies or a response to other economic factors. Most often, the phrase "capital strike" is used to describe resistance to labor-friendly or left wing reforms which are perceived or intended to be against the interests of business owners and investors.

  • U.S. President Franklin Roosevelt argued that the Recession of 1937 was caused by a capital strike organized to undermine the New Deal and his new taxes on high incomes. [8]
  • French President Francois Mitterrand is said to have faced a capital strike[9] when capital fled France following the 1982 nationalization of a large number of private firms and other labor market reforms. [10]
  • Chilean President Salvador Allende is said to have faced a capital strike[9] when investment fell after his election, as he was the leader of a left wing coalition that proposed a series of large-scale nationalizations and far-reaching economic reforms.[11]
  • U.S. President Barack Obama was said to have faced a capital strike during the Great Recession, including then-Speaker of the House John Boehner stating that "job creators in America are on strike" in response to uncertainty over the Obama administration's economic policies.[12]

Impacts

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Capital strikes have historically impacted economies and governments in a variety of ways and provoked a variety of responses.

  • The Roosevelt administration took an aggressive stance in response to the recession and alleged capital strike. Roosevelt railed publicly against monopoly business interests[13], and signed into law a total of $3.75 billion worth of new congressionally allocated government spending to be divided among government recovery agencies, which helped spur economic rehabilitation.[14]
  • Disinvestment and international market pressures forced the Mitterrand government to reverse course on economic policy, making significant cuts to public spending, raising individual taxes, and setting a hard ceiling on deficit spending.[10]
  • While the capital strike, often manifested through the intentional under-production of necessity goods, damaged Salvador Allende's government[15], it maintained significant popular support among working class Chileans[16] until it was overthrown in a 1973 U.S. supported coup that put in place a more business-friendly Military Junta lead by General Augusto Pinochet.
  • Under pressure from large firms withholding investment, the Obama administration pursued several pro-business reconciliation initiatives such as cutting corporate tax rates, pursuing free trade deals, and limiting government regulation[17][18], but still signed into law mild financial regulations, the Affordable care Act, and the 2009 American Recovery and Reinvestment Act.

Conditions under which capital strikes are effective.

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Given that capital strikes have succeeded or failed in a variety of situations, predicting how effective one may be is particularly difficult. Some have put forward that capital controls are one key method by which governments can mitigate the effectiveness of disinvestment and capital flight[19][10], but their usefulness has been disputed[20]. The effectiveness of modern purported capital strikes in Greece and Venezuela have been attributed to the sheer strength of the financial firms involved.[18]

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A capital strike is the premise of Ayn Rand's novel Atlas Shrugged.

See Also

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Capital Flight

Disinvestment

References

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  1. ^ 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. S2CID 158421929.
  2. ^ "Capital Strike Definition". Shmoop. 2019.
  3. ^ http://brophyworld.com/foreign-investor-explains-capital-strike-against-chile/
  4. ^ Epstein, Gerald A. (2005). Capital Flight and Capital Controls in Developing Countries. Cheltenham, United Kingdom: Edward Elgar Publishing. p. 6. ISBN 9781781008058.
  5. ^ Frank, Thomas (April 2013). "To Galt's Gulch They Go". The Baffler.
  6. ^ Karlgaard, Rich (22 December 2008). "Capital Is On Strike". Forbes.
  7. ^ James, Frank (15 September 2011). "Boehner Lobs Supply Side Shell In Fiscal Trench War With Obama". NPR.
  8. ^ Markham, Jerry (2002). A Financial History of the United States Vol II. M.E. Sharpe. p. 234. ISBN 9780765607300.
  9. ^ a b Devine, James (Fall 1989). "Paradigms as Ideologies: Liberal vs. Marxian Economics". Review of Social Economy. 47–3 (3): 305. JSTOR 29769465 – via ResearchGate.
  10. ^ a b c Eaton, George (October 7, 2017). "French lessons: what Corbyn can learn from Mitterrand's mistakes". The New Statesman. Retrieved February 19, 2019.
  11. ^ "Salvador Allende | president of Chile". Encyclopedia Britannica. Retrieved 2019-03-01.
  12. ^ Chiang, Lulu (September 15, 2011). "Boehner: Job Creators in America are "on Strike"". CNBC. Retrieved February 19, 2019.
  13. ^ Freyer, Tony A. (2016). Antitrust and Global Capitalism. Cambridge: Cambridge University Press. p. 59. ISBN 978-1139455589.
  14. ^ Institute, Roosevelt (2010-08-19). "Roosevelt Recession". Roosevelt Institute. Retrieved 2019-03-02.
  15. ^ Brown, Kendall W. (2019). "Chilean Military Overthrows Allende". Salem Press Encyclopedia (EBSCO Host).
  16. ^ Navia, Patricio; Osorio, Rodrigo (2017). "'Make the Economy Scream'? Economic, Ideological and Social Determinants of Support for Salvador Allende in Chile, 1970–3". Journal of Latin American Studies. 49 (4): 771–797. doi:10.1017/S0022216X17000037. ISSN 0022-216X. S2CID 151818039.
  17. ^ Williamson, Elizabeth (11 December 2010). "Obama Woos CEOs as Frictions Ease". The Wall Street Journal. Archived from the original on 2015-03-25.
  18. ^ a b Young, Kevin; Schwartz, Michael (3 February 2017). "When Capitalists Go on Strike". Jacobin.
  19. ^ Noor, Jaisal (21 January 2014). "Syriza Succeeds in Greece by Challenging European Social Democrats' Approach to Reform - Panitch: Reforms can be easily thwarted by the power of business and the ideology of neoliberalism". Real News Network.
  20. ^ Hartwell, Christopher (3 July 2015). "Capital Controls Hinder Needed Reform". Handelsblatt.
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