What value do they extract? They provide a good or service to denizens. Unless of course you believe in a serf model of government in which people are an asset of the state and everything should serve the states goals.
When an entity operates in an area but optimises the financial structures in such a way as to siphon all the profits out to another area, that is extracting value that used to remain in the area.
That service or goods are provided has no bearing on the matter.
The same works on the producer side. It typically costs them less than the market price to produce the product.
This is basic economics and kind of wild I have to explain.
Secondly, you don’t need to explain this here. Rather read up better, because this theory requires a fair market which fails when some participants can avoid taxes.
It doesn’t help that there are Card Carrying Socialist activists in our public school system in Australia, indoctrinating kids in to a politically and economically bent out of shape ideology.
I don’t believe many Australians are aware of just how dangerously few steps away from the mouldy bread and rotting fish head soup lines version of “equality” we really are.
Since when has government, of any sort, been a reliable arbiter of truth or wisdom?
P.J. O’Rourke would be turning in his grave.
Giving money and power to government is like giving whiskey and car keys to teenage boys.
Socialists in Schools: https://www.victoriansocialists.org.au/campaigns/socialists-...
The government in a free democracy is ultimately controlled by the people, is supposed to (and usually does) work for the people, to protect the environment where that is necessary, protect people from being exploited by too powerful corporations, etc.
None of this is socialism, this is in fact the system that made the US great in the years after WW2.
Also I am neither Australian nor socialist.