Why? Because incentive is stifled. Company bosses will not invest any more than they have to. If you were a CEO would you stick your neck out, and take the risk that the government will not stymie you? No way.
How? By stunted growth and little productivity gains. A company that does not grow, dies.
This is kindergarten stuff for those who run businesses. For those on the government teat,I don't know, but I'm surprised anyone would not know the answers. Unless they don't want to see them.
