The newly-proposed Global Minimum Corporate Tax is an impracticable plan that diminishes American economic sovereignty and competitiveness.
As I write this post, American officials are meeting with their counterparts from the UK, France, Japan, Italy, Canada, and Germany at the G7 Summit currently underway in Cornwall, UK. One of the main issues they are discussing is the promulgation of what they are calling a ‘global minimum corporate tax’, which would involve all seven of the world’s wealthiest democracies agreeing to not move corporate taxes below 15% so as to better capture the profits of large multinational corporations. When I first read that the Biden administration – and particularly Treasury Secretary Janet Yellen – was seeking to push this international agreement on taxes, I was flabbergasted at the fact that any American administration would think this is a good idea. There are several reasons for my skepticism, many of which were expertly laid out by the Wall Street Journal, but this post will focus on one major issue that’s dear to my heart: the fact that the agreement necessarily diminishes American sovereignty for no good purpose.
There have been opinions galore on the most fascinating financial news of the week (and possibly far longer): the Gamestop/Reddit investing drama. Pundits and commentators from all sides of the political spectrum have been weighing in on the saga all week, but I have not yet seen any of these accounts which perfectly captures my feelings on the issue. First off, I’ll do my best to quickly explain what actually happened before diving into my thoughts.
Before I get into the meat of this blog post, I have to start with a few quick thoughts/disclaimers. First, what happened at the Capitol on January 6th was one of the most unpatriotic, abhorrent, depressing domestic political events that I’ve witnessed in my 31 years on this planet. It was an absolute disgrace and all of those rioters who assaulted the seat of our federal government should be prosecuted to the fullest extent of the law. I will be writing more in depth about this failed insurrection later this week, as I want to wait for as much information as possible before committing my (many) thoughts to paper (or whatever the Internet equivalent is).
The main purpose of this post is to discuss one of the reactions to the events of the 6th, namely the concurrent banning of President Donald Trump from all social media platforms, as well as the deplatforming of Parler, a Twitter competitor favored by some Trump supporters and right-wing activists. Many have written about this already, but here’s my two cents as someone who is genuinely struggling with how to address this in a way that is consistent with my personal political and ideological framework. I support the right of private companies like Amazon, Twitter, Google, Apple, and Facebook to freely associate with whomever they please. As a free marketeer and a laissez-faire capitalist, I do not wish to see government regulation in most aspects of private commerce; I believe that the free association rights of individuals and businesses are sacrosanct, whether it involves a small-time religious baker in Colorado or a massive Silicon Valley conglomerate. Still, that doesn’t mean that I’m not disturbed by the seemingly coordinated deplatforming based on political speech that we’re seeing now. I’m most concerned by the appearance of coordination among supposedly neutral platforms who compete with one another, whether that coordination was actual cartel-like behavior or if it reflects a high level of ideological groupthink. Both of those options are very disturbing to me when it comes to my support for an absolutist position regarding free speech. Given the dissonance between my two preferred classical liberal positions on free association and speech in this instance, I am not sure what the right approach is. All I can say for certain is that it is a nuanced issue that merits deep consideration and a society-wide debate over our cultural values. Most of these positions and issues have been raised elsewhere, so I do not intend to dive too deeply into that heavily populated pool. However, there is one specific aspect of this issue that I have not seen addressed yet, so I wanted to write a bit more about it: the unforeseen impact of these corporate actions on the soft power of the American government.
A sale to an American company would only serve to create perverse incentives.
The Chinese-owned video-sharing social media app TikTok has been all over the news recently, as the federal government has been considering banning the app from the US. I am a big proponent of this strategy and laid out the case against TikTok a few weeks back on this blog. This past weekend saw a flurry of activity on the TikTok front, as President Trump first stated that he was planning to ban the app outright before backing off of that position. The current plan du jour is to allow the American technology giant Microsoft to pursue a full acquisition of TikTok’s US operations. A sale to Microsoft would include the app’s American business, as well as the user data which the app collects. This would solve the problem that I delineated, would it not?
Napoleon’s Continental System and His Ultimate Downfall
Napoleon Bonaparte was inarguably the most influential world historical figure of the late eighteenth and early nineteenth centuries, and much has been made of his rise, reign, and ultimate downfall. Of the debates over the Napoleonic regime, none is more heated, complex, or replete with disparate ideas as the argument about the proximate causes of Napoleon’s fall and the rapid collapse of his European Empire. Myriad opinions on the reasons that Napoleon’s regime collapsed exist and many of these have received popular acclaim or widespread agreement. Some have claimed that the end of the Grand Empire was due to the machinations of Napoleon’s Foreign Secretary, Charles Maurice de Talleyrand, after Napoleon insulted his pride sometime between 1808 and 1809. Under this theory, Talleyrand “passed information to the Russians and Austrians, among others,” allowing Napoleon’s enemies to have an edge on the ‘Little Corporal’ and outmatch him strategically. Many observers focus more heavily on Napoleon’s personality flaws as contributing to his fall from power. Historian Adam Zamoyski states that “The number of complexes he suffered from, including class inferiority, money insecurity, intellectual envy, sexual anxiety, social awkwardness and, not surprisingly, a persistent hypersensitivity to criticism… drove his stark ambition, undermined his grandiose endeavors—and ultimately crippled his historic legacy.”