By Kevin D. Williamson
Friday, December 11, 2015
Robert Reich, whose surname so nicely fits the
increasingly totalitarian mood of the Democratic party that a fiction author
would be mocked for making it up, has some suggestions on the theme: “What To
Do about Disloyal Corporations.” Focus in and hold on that word “disloyal” for
a moment and consider its implications: What is expected of a business now is
not that it should follow the law and conduct its affairs honorably, but that
it should knuckle under to the demands of whatever faction happens to hold
political power or be punished by the state for “disloyalty.”
At issue is the question of corporate inversion, which is
a jargon-y way of describing the fact that when U.S. firms merge with firms
headquartered in other countries, they sometimes locate the legal residence of
the new merged enterprise in the country with friendlier corporate tax policies
— and, given that the United States has the highest and most cumbrous corporate
tax code in the developed world, that almost always means relocating abroad. We
are not talking here about firms relocating to Caribbean tax havens or the
like, but companies moving to Ireland, Canada, Switzerland, etc.
Reich refers to such firms as “deserters” — note the
martial-law borrowing — and such relocations as “desertion,” which remains a
capital offense under U.S. military law. Joseph Stalin infamously ordered that
deserters be shot on sight and sent their families to prison camps; Reich wants
them punished, too, by illegally stripping these firms of ordinary legal
protections, for instance by revoking patents issued under American law.
The Democrats have been indulging in this sort of thing
for a while now. (Since Woodrow Wilson, Jonah might argue.) Barack Obama
natters on about “economic patriotism,” a particularly stinky formulation in
that it conflates patriotism with the willingness to toe such policy lines as
the president demands. This is classic strong-man thinking. President Obama for
a minute there was playing around at trying to resurrect ancient nationalist thinking, giving a speech
attempting to channel Theodore Roosevelt’s “new nationalism” at the Kansas site
of his predecessor’s famous 1910 address. President Obama denounced George W.
Bush’s economic policies as “unpatriotic.” Robert F. Kennedy Jr. argues that
his political opponents are guilty of “treason,” and wants people to be jailed
for holding unpopular political views. Democrats in 2012 denounced Mitt Romney
as an “economic traitor,” which the Obama campaign amplified by declaring him
“Not One of Us.” Senator Bernie Sanders routinely denounces his political
targets as unpatriotic.
This is straight from the cartoon version of The Road to Serfdom. The government
creates stupid economic incentives; private actors respond to those stupid
incentives by making choices other than the ones their feckless rulers
intended; the politicians declare this “unpatriotic,” and insist that their big
ideas would work just fine if not for these scheming economic traitors and
their connections to inscrutable foreigners; in the final act, state violence
is directed against those who make economic choices other than the ones that
politicians demand, either in the name of patriotism or in the name of national
security.
There is one obvious alternative — stop creating
boneheaded economic incentives through boneheaded economic policy — but that never
seems to occur to anybody. Certainly not to Robert Reich, whose glee about the
prospects of using the power of government to punish nonconformist businessmen
is unseemly and illiberal.
No comments:
Post a Comment