by Michael Keane
In the United States of America, it is generally accepted that there is a high level of both patriotism and capitalism flowing through its citizenry. With the China trade issues like forced tech transfer taking more of a center stage, how to answer the question of what to do when patriotism and capitalism clash has been laid open and the country's business leaders are not stepping up, but are selling out.While there are many layers to the issue, corporate behavior has been less than stellar if you have a lens of citizen first, investor second.
There is an informative Frontline episode by Laura Sullivan on the China trade issues (link here). A central theme of the piece is how corporations have found themselves having trouble explaining the issues while also not wanting the solutions (aka tariffs and other action items) taken because of ramifications to profits, products and services from China. A recent letter from the shoe retailers industry (here) conveys this behavior. Granted, not all of the retailers are based in the US.
This is continuing a trend where corporations are willingly choosing capitalistic desires over the patriotic requirements necessary. This is likely because billions of bonus dollars and stock appreciation is at stake. The tax cuts was another item of corporate misbehavior. The Trump administration were all but assured that corporations would repatriate more revenue when they received their tax cut. That did not happen to any extent the administration was expecting and now our deficits are much higher because of it.
The China tariff standoff will not end until the government of the United States does some honorable, but profit costing actions. Our future competitive advantages are being monetized and sold by the current generation of business leaders in this country. If corporations are allowed to continue to influence government officials to create policy for profits over patriotism, we all will be in trouble.
