"It's called a capital strike. It is the favourite action of oligarchies everywhere when faced with democratically elected left wing governments. They consider it short term pain for long term control."
Oligarchs everywhere, or people anywhere, do not like to create things only to have the creation taken away. Imagine you grow a beautiful vegtable garden and the government comes and takes all the vegtables. Would you plant again next year?
Or, you create a successful factory (invest a lot of time, money, and effort) and the government takes it away. Would you create another one? I think this is what you call a "capital strike".
What if the government expropriated the fruits of your labour by taking 80% of your salary. Would you not withdraw your services from the labour market? Is this any different from a capital strike?