Column: The post-WWII order is ending—and nothing has replaced it
Economists at the World Bank and International Monetary Fund must feel pretty lucky these days. They work for just about the only institutions set up in the aftermath of World War II that aren’t in the middle of an identity crisis. From Turtle Bay to Brussels, from Washington to Vienna, the decay of the economic and security infrastructure of the postwar world has accelerated in recent weeks. The bad news: As the legacy of the twentieth century recedes into the past, the only twenty-first century alternatives are offered from an authoritarian surveillance state.
The pressure is both external and internal. Revisionist powers such as China, Russia, Iran, and North Korea undermine the foundations of global governance and hijack institutions to the detriment of the liberal international order. The institutions themselves lack the self-confidence necessary to further the cause of human freedom. Meanwhile, the most powerful nation in the world has turned inward. Its foreign policy is haphazard and improvisational, contradictory and equivocal. The confusion and zigzagging contribute to the erosion of legitimacy. It delays the emergence of new forms of international organization.
The breakdown was visible at last week’s NATO summit in London. Remarkably, the source of the immediate ruckus wasn’t President Trump. It was French president Emmanuel Macron, who doubled down on his criticism of the Atlantic alliance that he’d expressed in a recent interview with the Economist. Trump disagreed with Macron’s description of NATO as “brain dead.” He and other allies didn’t back Macron’s call for rapprochement with Russia and China and renewed focus on terrorism.
Macron wasn’t the only troublemaker. Turkey’s autocratic leader, Recep Tayyip Erdogan, who recently tested his Russian S-400 air defense systems againsthis American F-16s, said he would block a Balkan defense plan unless NATO designates the Kurdish YPG a terrorist group. The summit ended with a leaked video of Macron, Justin Trudeau, Boris Johnson, and Dutch prime minister Mark Rutte sharing a laugh at Trump’s expense. Haughty euro-elites mocking the American president is always an affront, but it is especially counterproductive now when the alliance is under attack from prominent voices within the United States.
When it was founded, NATO was one part of a strategy whose goal was the prevention of another global war. Security guarantees and the forward deployment of conventional forces bound America to Europe and the Europeans to each other. Another part of the strategy led to the EU. It integrates the economies of nations that unleashed the two most devastating conflicts in human history. It was thought that trade relations contribute to peace and nationalities can be submerged under a continent-sized umbrella. What the architects of Europe didn’t anticipate was popular resentment of bureaucratic administration, the imbalances and fiscal consequences of monetary union without political union, and the reassertion of national identity that results from large-scale immigration.
Today the politics of every major European country is a mess. I write these words on the day of a British election that will determine whether the United Kingdom leaves the EU and whether an anti-Semitic socialist lives in 10 Downing Street. Germany flirts with recession, its chancellor is a lame duck, the grand coalition hosts an SPD under far-left leadership, and the largest opposition party is the Alternative for Germany. Macron might want to spend more time on domestic politics: His approval rating is around 30 percent, striking workers have paralyzed France, and 13 French soldiers were killed in Mali.
National populism has transformed Hungary, Poland, and the Czech Republic and plays a significant role in Germany, France, Austria, and Sweden. No longer deputy prime minister of Italy, Matteo Salvini remains the most significant political figure in his country. “Recent opinion polls indicate that if elections were held tomorrow, Mr. Salvini would not only easily become prime minister, but that a coalition of the League, the post-fascist Brothers of Italy and the remainder of Mr. [former prime minister Silvio] Berlusconi’s Forza Italia would command an absolute majority in parliament,” writesMiles Johnson of the Financial Times. The European leaders who fear Salvini are nonetheless ambivalent about the threat posed by Vladimir Putin and by Ayatollah Khamenei. They are happy to advance the Nord Stream 2 and TurkStream pipelines and circumvent U.S. sanctions against Iran.
Frenetic institution building accompanied victory in World War II. The Allies created organizations devoted to international security, diplomacy, health, and economics. The first to go was the Bretton Woods agreement on international finance, which ended when Richard Nixon took America off the gold standard in 1971. The next was the United Nations, which revealed its corruption and domination by dictatorships in its resolution equating Zionism and racism in 1975. The Iraqi nuclear facility at Osirak (fortunately destroyed by the Israeli Air Force in 1981) was evidence that the Non-Proliferation Treaty is only as good as the regimes that sign it. NATO and the EU survived the Cold War and flourished in the two decades after the dissolution of the Soviet Union but both have run up against the limits of expansion. Both have lost sight of their historic function to preserve the peace.
Sometimes changing circumstances render institutions powerless. That is happening to the World Trade Organization. The WTO, endowed in 1995, was built for a unipolar world. When China joined in 2001, its GDP was one-tenth the size of America’s. Now it’s more than half and China has emerged as a military, industrial, and technological rival. But the WTO still designates China as a “developing” country, which entitles it to certain advantages. President Trump’s campaign against this exorbitant privilege reached an impasse December 10, when his administration blockedjudicial appointments to the organization’s dispute-resolution court. It no longer has the capacity to arbitrate. The WTO is toothless. Hollowed out. What will replace it? Nothing has been proposed.
The motive power behind all of these institutions was American commitment. What upheld the structure was our willingness to sustain the costs of international security and global defense of democracy. That engagement began to wane after the Cold War. By 2008 it was practically nonexistent. The president’s disinterest in foreign affairs is a reflection of his countrymen’s. His administration, to its credit, has proposed great power competition as the basis for a renewed American grand strategy. The follow-through has been difficult.
That has left us with entropy. The international scene is filled with decayed institutions and unpalatable choices. On one hand is the status quo. On the other is China’s Belt and Road Initiative and Made in China 2025. “The crisis consists precisely in the fact that the old is dying and the new cannot be born,” wrote philosopher Antonio Gramsci. “In this interregnum, a great variety of morbid symptoms appear.” And no one has a cure.
Despite polls going in that showed the race was tight, Boris Johnson and the Tories won a smashing victory in Thursday’s U.K. election. The biggest win for the right since Mrs. Thatcher.
Why they did will be hotly debated—here and there—for some time to come.
Some attribute the outcome to Johnson’s successful mobilization of Brexiteers in both the Conservative and Labour parties. Frustrated after three years of parliamentary inaction following passage of the June 2016 referendum to pull the U.K. out of the EU, they wanted change. But that doesn’t explain everything.
The British elites spent the interregnum between the referendum and the Thursday’s election telling everyone the original result, influenced heavily by disinformation from the pro-Leave side, was a fluke. They predicted confidently a second referendum, if one were held, would show this to be true and end differently.
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They were wrong. Thursday’s election was a referendum on Brexit. Johnson made it one. It passed again, with turnout between 70 and 80 percent in many constituencies, making it hard to argue the first vote was a fluke. The Remainers are a spent political force—and may always have been so.
The outcome, as I wrote here last week, should encourage those who feared the people’s will is eclipsed by a tyranny of experts, elites and bureaucrats. This does not argue for populism—Edmund Burke correctly warned officeholders that sacrificing their judgment to the opinion of the people they represent would betray them—but it is a welcome reminder that votes count for something. The efforts of the political, economic, academic and media elites to put their thumb on the scale to block Brexit finally appear to have been thwarted.
As to the counter-narrative popular today in the United States, that Labour’s radicalism led to the party’s worst showing since the 1930s, it’s not clear that’s so. According to Lord Ashcroft’s post-election poll, 72 percent of those who voted Conservative said the need to “get Brexit done” was their primary reason for voting as they did. Only 25 percent said they were motivated by a desire for “the right leadership.”
This helps explain the tremendous inroads the Tories made in Labour strongholds in the North of England. Johnson breached the “red wall” by tapping into the strong pro-Leave sentiment evident in there during the referendum. Jeremy Corbyn’s promise to nationalize broadband, rail and postal services, as well as expand spending on the National Health Service (which the Conservatives also promised, though by not as much), was not enough to keep some of his most loyal voters inside his coalition.
This suggests the lesson for U.S. politicians looking ahead to 2020 is not what the instant analysis suggests. Former Vice President Joe Biden, the Democratic frontrunner for his party’s nomination, argued strongly Friday Labour moved too far to the left to be electable. That, he said, argues for a more moderate candidate to be named standard-bearer next year, one who would not abandon the middle, as Corbyn is said to have done.
Perhaps. But Lord Ashcroft found “Labour won more than half the vote among those turning out aged 18-24 (57 percent) and 25-34 (55 percent), with the Conservatives second in both groups. The Conservatives were ahead among those aged 45-54 (with 43 percent), 55-64 (with 49 percent) and 65+ (with 62 percent).” Corbyn’s radical manifesto helped cost him the election—being more popular perhaps with the rich around London than among the nation’s working class—but it was a winner with younger voters.
For Biden, Massachusetts Senator Elizabeth Warren, Vermont Senator Bernie Sanders and the others who want their party’s nomination, it suggests a quandary. Stay to the left to win the nomination with appeals to the activist base, split up among state delegations because “winner take all” contests have been abolished? Or moderate to appeal to older voters, who, surveys tell us, are more likely to vote in the general election?
The answer is not clear, especially since the so-called “superdelegates,” the sober-minded party solons who typically play an outsized role in picking the Democratic nominee, are unable to participate in the first-round balloting at the convention in Milwaukee. All too often, arguments about electability prevail over ideology only when made to experienced pols with cooler heads than those voting first.
Corbyn’s Labour Party was too extreme for modern Britain. He’s stepping down, but not without trying first to lead the post-election autopsy to prevent his message from being discredited. There may be those in Labour who long for the return of the days of Tony Blair, whose constituency, incidentally, went Conservative in the election, but they don’t hold the reins of power. The opposition response to the initiatives coming out of Downing Street will come from the radical left, not the center, giving the prime minister more room to accomplish more than Brexit. And on Thursday, he got the votes to do it.
It is a puzzlement whether the cottage industry of international election observers populating the American commentariat really understand what is at stake in the upcoming British parliamentary election. It should be more widely discussed than it is. And analyses should focus on what is motivating voters, rather than whether the Tories or Labor are more likely, according to the polls, to come out ahead.
In reality, the future of representative democracy may be on the line, at least as far as the idea the people deserve to get what they voted for. It has been more than three years since 51.9 percent of those participating in a referendum on whether Britain should remain in the European Union took the position it should not. Yet, after three different prime ministers and one general election, the U.K. is still in the EU.
The why is easy to understand. The elites, including what has proved to be a majority of Parliament, think the people made the wrong decision and have done all they can to block Brexit from moving forward. But is that really appropriate?
Boris Johnson, the current prime minister, is a confirmed Brexiteer. He joined and later resigned from the government of his immediate predecessor when it became clear she had bollixed up the whole business. And he has pushed for this election in order to replace the anti-Brexit members of his own party with those who support his position and will vote with him to withdraw from Europe.
This is not a new issue. It has perplexed governments going back to Margaret Thatcher’s. Indeed, there are those who still believe her opposition to Britain joining the EU was the principal reason members of her Cabinet eventually plotted her overthrow. But the British elites—leaders in the permanent government, as well as the financial community, media, academia and foreign policy establishment—wanted in and, for their sins, they got their way.
The people were a different matter. Until the June 2016 referendum, it was conventional wisdom that it was only the cranky, fringe elements in U.K. politics who objected to EU membership on the grounds that British sovereignty was being impinged upon and for other reasons, those who populate the corridors of power found silly or unworthy of attention.
The referendum smashed that conception. To the shock of all the elites, a majority of the country ratified the “U.K. out the EU” position, believing they were setting out on a course to regain the nation’s independence. Yet the people’s choice has been thwarted, time and again.
First came the effort to discredit the vote, blaming it on anti-immigrant racism and fears of job loss in areas already economically depressed. That proved to be untrue. A survey of 12,369 voters in the United Kingdom conducted the day of the referendum found the No. 1 issue propelling people to vote to leave was their belief that the U.K. should remain a self-governing entity not responsible to some supranational body writing rules and regulations about the economy and other matters. Once that failed, the machinations began in Parliament and elsewhere to prevent the withdrawal agreement from ever being approved, which brings things to where they are now.
The election analysts who are part of America’s own elites have been strangely silent about all this. It may they are distracted by the ongoing congressional foofaraw over President Donald Trump’s interaction with the president of Ukraine to notice the global significance of events in the U.K. It’s not wrong to point out the similarities between Johnson’s effort to get a deal done and Trump’s effort to bring the American government to heel. Here, too, there seems to be considerable confusion, as Lieutenant Colonel Alexander Vindman inadvertently confirmed to the House Intelligence Committee considering the impeachment of the president, about who makes policy and just who’s in charge.
In the end, if it is affirmed the people are in charge and that they exercise their authority by delegating it to their elected representatives, up to and including the president of the United States, then things will work out fine. The American writer H.L. Mencken, a friend reminds, once described democracy as being “the theory that the people know what they want and deserve to get it good and hard.”
Here in the U.S. and in Britain, there are those with power who believe it’s their job to keep the people from making what they regard as a mistake. If the battle over Brexit, which is one of those “mistakes,” goes the way they want, then all the small “d” democrats around the world have some serious soul-searching to do before we can regain the power we’ve apparently lost.
A survey of 2,504 French adults found that 69 percent of respondents would not buy products labeled ‘made in Israel.’
Europe’s highest court isn’t exactly telling everybody to boycott Israeli food and wine. But they’re doing their darnedest to ensure Europeans don’t buy them.
For anyone who missed the news, the Court of Justice of the European Union (CJEU) ruled last week that food and wine produced by Jewish Israelis beyond the Green Line must be explicitly marked: “‘Israeli settlement’ or equivalent needs to be added, in brackets, for example. Therefore, expressions such as ‘product from the Golan Heights (Israeli settlement)’ or ‘product from the West Bank (Israeli settlement)’ could be used.”
Eugene Kontorovich, director of the Center for International Law in the Middle East at George Mason University Scalia Law School, considers the new labels “a new kind of Yellow Star on Jewish-made products.” He told The Federalist that the CJEU’s labeling requirements “are not geographic—they are not about where something was made but by whom.” Kontorovich added, “They’re not even pretending that the rules they’re applying to Israel are the rules they’re applying to the rest of the world.”
Readers may recall that when the court’s advocate general suggested such labeling earlier this year, his reasoning was that consumers needed “neutral and objective information.” But this outcome is neither neutral nor objective. As Marc Greendorfer, president of Zachor Legal Institute, which battles Israel boycotts, emailed, “That the court contravened established principles of international law to wrongly stipulate the status of the disputed areas (as occupied) exposes the fact that this ruling was about taking sides in a political dispute.”
“Labels are not the place to engage in political debate,” Brooke Goldstein, executive director of the Lawfare Project, which participated in this case, told The Federalist.Indeed, product labeling is supposed to be about health and safety. Labels also help consumers shop “ethically” or “responsibly.” But if a consumer factors politics into those decisions and wants to avoid Israeli goods, why is it so important to specify where in Israel those goods are produced?
According to a 2017 poll conducted by Opinion Way for the Lawfare Project, a survey of 2,504 French adults found that 69 percent of respondents would not buy products labeled “made in Israel.” That number rose to 75 percent if labels read “West Bank, Israeli colony/settlement.” So more detailed labeling would clearly shift some shoppers’ habits, but those figures are already startlingly high.
While the CJEU may not be declaring a boycott with this ruling— after all, it remains legal to import Israeli goods — they are nudging consumers in that direction. Even the U.S. State Department, which typically avoids criticizing allies, expressed “deep concern,” calling “the circumstances surrounding the labeling requirement . . . suggestive of anti-Israel bias.” They also rightly noted that “this requirement serves only to encourage, facilitate, and promote boycotts, divestments, and sanctions (BDS) against Israel,” a movement Germany’s own parliament considers antisemitic, and even Nazi-like.
This decision is not focused on informing consumers about unconscionable behavior across the globe (e.g., the Chinese government’s treatment of Uyghurs) or highlighting the world’s many disputed territories (see: Western Sahara, Cyprus, and Crimea for starters). It is about ostracizing the world’s only Jewish nation and unilaterally redrawing Israel’s borders via economic pressure.
The aforementioned French survey underscores just how widespread popular prejudice against Israel is in France, long home to Europe’s largest Jewish community. Rather than calm that prejudice, the CJEU panders to it, inflames it, and now embeds it in law. So it won’t be surprising if antagonism to Israel keeps rising in France and the rest of Europe. Stigmatizing Israel now has the gloss of official, legal respectability.
The whole episode is offensive. Consider, this long-awaited decision was scheduled for release on November 12. The U.S. Holocaust Memorial Museum reminds us that date is significant, as “just 2 days after the end of Kristallnacht [in 1938], the Nazi government issued the Decree on the Elimination of the Jews from Economic Life. Banned from owning shops or selling any kind of good or service, most Jews lost their livelihoods entirely.”
Further, by establishing a unique standard for Israel, this decision fits the internationally accepted definition of antisemitism, cited in the United Nations’ recent report on global antisemitism. So it’s rich for the European Commission to tell Fox News, “Any suggestion that indication of origin on products coming from Israeli settlements in the occupied Palestinian territory or in the occupied Golan has anything to do with targeting Jews or anti-Semitism is unacceptable. The EU stands strongly and unequivocally against any form of anti-Semitism.”
Check out that loaded word choice. Then consider that such critiques are fair game. The EU does not stand unequivocally against antisemitism. There are bright spots, like Austria’s second largest city banning support for BDS. However, European Jews are acutely aware that antisemitism is widespread and dangerous.
EU officials like Michael O’Flaherty, director of the European Union’s Fundamental Rights Agency, know that in spite of the many reported antisemitic crimes across the EU, 80 percent remain uncounted. “As one person asked [O’Flaherty], ‘Why would I report antisemitism to an antisemite?’” Over in Britain, which has not quite left the EU, nearly half of British Jews have said they “would ‘seriously consider’ emigrating if [Labour Party leader Jeremy] Corbyn is elected prime minister [in December].”
Seventy-four years after the Holocaust’s end, the EU is no haven for Jews. Nor is it a particularly reliable friend to Israel. Calling the decision “disgraceful,” Sen. Ted Cruz (R-TX) told The Federalist, “This labeling singles out Jews who live in communities where Europeans don’t think they should be allowed to live and identifies them for boycotts. It is reminiscent of the darkest moments in Europe’s history.”
Indeed, the CJEU may have forgotten, but world Jewry hasn’t. We also know that discrimination and other harms that start with Jews never end with us. So whether or not the timing was coincidental, Secretary of State Mike Pompeo’s announcing a reversal of Obama-era policy regarding Israel’s settlements certainly looks fortuitous, because this fight is far from over.
Hillary Clinton called them “the deplorables.” Barack Obama called them losers who “cling” to their Bibles, bigotries and guns.
To President Jean-Claude Juncker of the European Commission, they are “these populist, nationalists, stupid nationalists… in love with their own countries.”
Well, “stupid” they may be, and, yes, they do love their countries, but last week they gave Juncker a thrashing, as they shook up the West and the world.
Elections in the world’s largest electoral blocs — the 28-nation EU, and an India of 1.3 billion people — showed that the tide of nationalism continues to rise and spread across Europe and Asia.
In India, the Hindu Nationalist BJP party of Prime Minister Narendra Modi won a smashing victory. So strong was Modi’s showing that he rushed to reassure non-Hindus, especially India’s 200 million Muslims, that they remain equal citizens. But in India the Hindu hour is at hand.
Nigel Farage’s Brexit Party, formed just months ago, ran first in Britain with 31%. No other party came close. Labor won 14% and Prime Minister Theresa May’s Tories ran 5th with 9%, a historic humiliation.
In the French elections, Emmanuel Macron’s party lost to the National Rally of Marine Le Pen, whom he had defeated 2-1 in the last presidential election.
Matteo Salvini’s populist-nationalist League, with 34%, ran first in Italy in a showing that could lead to national elections that could make him prime minister.
The nationalist Law and Justice Party in Poland and the populist Fidesz Party of Viktor Orban in Hungary were easily victorious.
In Germany, however, the conservative-socialist coalition of Angela Merkel bled support. Both the CDU and SPD lost strength in defeats that could shake the Berlin government.
What do these elections tell us?
If the Conservatives wish to remain in power in Parliament, they will have to leave the European Union and, if necessary, crash out without a divorce settlement with Brussels.
The Tories cannot defy the will of their own majority on the most critical issue in 50 years — a nationalist demand to be free of Brussels — and still survive as Britain’s first party.
Whoever wins the Tory competition to succeed May will almost surely become the prime minister who leads Britain out of the EU.
Nor is that such a tragedy.
The first Brexit, after all, was in 1776, when the 13 colonies of North America severed all ties to the British crown and set out alone on the path to independence. It did not turn out all that badly.
Last week’s election also saw major gains for the Green parties across Europe. Laser-focused on climate change, these parties will be entering coalitions to provide center-left and center-right regimes the necessary votes to create parliamentary majorities.
The environment is now likely to rival Third World immigration as an issue in all elections in Europe.
While nationalist and populists control a fourth of the seats in the EU Parliament, they are isolated. They may have the power to block or veto EU actions by Brussels, but they cannot impose their own agenda.
Yet even larger lessons emerge from these two elections.
Liberalism appears to be losing its appeal. A majority in the world’s largest democracy, India, consciously used their democratic right to vote — to advance sectarian and nationalist ends.
Why is liberalism fading away, and nationalism ascendant?
The former is an idea that appeals to the intellect; the latter, rooted in love of family, faith, tribe and nation, is of the heart. In its potency to motivate men, liberalism is to nationalism what near beer is to Bombay gin.
To be a proud Pole, Hungarian, Italian or Scotsman has a greater grip on men’s love, loyalty and allegiance than to be a citizen of Europe.
“Whoever speaks of Europe is wrong,” said Bismarck. Europe is but “a geographical expression.”
Identity politics, people identifying themselves by their ethnicity, nationality, race, culture and faith, appears to be the world’s future.
Even leftists are bowing to the new reality.
“Identity politics is exactly who we are and it’s exactly how we won,” says Stacy Abrams, the African American Democrat who almost won the Georgia governor’s race. “By centering communities in Georgia, we… increased voter participation, we brought new folks to the process.”
The Democratic Party is now a coalition easily identifiable by race, ethnicity, ideology and gender — African American, Hispanic, Asian, LGBTQ, feminist and Green.
Our Founding Fathers believed we Americans were a new people, a separate, unique, identifiable people, a band of brothers, who had risked their lives and shed their blood. Liberals believe we are held together by abstract ideas and ideals, such as democracy, equality and diversity.
But did Washington, Jefferson, Madison, Monroe, Calhoun, Clay, Jackson, Sam Houston, Tyler and Polk really believe in equality and diversity as they drove Indians, French, British, Spanish and Mexicans out of this land to create a continentwide nation of their own?
Or was Manifest Destiny really all about us, and not them?
By Jack Crowe • National Review
President Trump announced during a Wednesday press conference that his meeting with European officials yielded key trade concessions, including an increase in American soybean and liquefied natural gas (LNG) exports to Europe, and a commitment to work toward eliminating non-auto tariffs entirely.
“We have agreed today to work toward zero tariffs, zero tariff barriers and zero subsidies on non-auto industrial goods,” Trump said, reciting a joint statement crafted with European Commission president Jean-Claude Juncker. “We will also work to reduce barriers and increase trade in services, chemicals, pharmaceuticals, medical products, as well as soybeans. The European Union is going to start almost immediately to but a lot of soybeans, they’re a tremendous market, to buy a lot of soybeans from our famers in the midwest primarily.”
“The European Union wants to import more liquefied natural gas from the United States and they’re going to be a very big buyer. We’re going to make it much easier for them but they will be massive buyers, so that they will be able to diversify their energy supply,” he added.
By Stephen Moore • Investor’s Business Daily
If you listen to the media narrative on climate change and “clean energy,” you’d think that the rest of the world has moved smartly and seamlessly toward 21st century green energy, while the U.S. is the high-polluting laggard that just won’t get with the program to save the planet.
The Green Energy revolution around the world has turned into a Big Green meltdown with many nations sprinting away from “renewable” energy as if they were Usain Bolt.
Here are a few of the latest news flashes from Europe and Asia.
In Germany, the world leader in green energy, electricity prices have now reached a level triple those paid in the United States. See chart. Imagine the anger here if middle class Americans saw a tripling of their utility bills each month. Continue reading
by Natalie Johnson • Washington Free Beacon
Europe serves as a “launching pad” for ISIS jihadists to initiate attacks against the United States due to the absence of a cohesive information-sharing strategy among Western nations, former acting CIA director John McLaughlin said Wednesday.
McLaughlin, a 30-year CIA employee who served as acting director under the George W. Bush administration, warned that the absence of effective coordination between European intelligence agencies exposes the United States to greater risk of attack.
Testifying before the House Armed Services Committee, McLaughlin said the Trump administration must work with European allies to establish an intelligence-sharing platform that coordinates Europe’s extensive network of security services. Continue reading
Returning to a system of taxation without representation where a European power taxes Americans is unacceptable.
The European Union (EU) has ruled that Apple, one of the world’s top technology companies, must pay $14.5 billion in taxes to Ireland, despite the fact that Ireland has determined that Apple has paid all the taxes it owes.
You read that right.
The nation of Ireland has reviewed Apple’s tax filings and has determined that Apple has paid 100% of the taxes it owes under Ireland’s tax code. But the EU has stepped-in and said that Ireland doesn’t understand its own tax laws, that Ireland’s review of Apple’s taxes is incorrect, and that only EU bureaucrats in Brussels can understand Irish tax law and Apple’s tax filings.
Tim Cook, Apple’s CEO, described this EU ruling as “total political crap.” Tim Cook is quite frankly being very kind in his characterization. The truth is — this is far worse than that. Aside from the hubris of a bunch of pointy headed bureaucrats in Brussels telling Irish tax authorities that they don’t understand their own tax code, this is actually an attempt to legalize grand theft robbery. At the very least, the EU is now officially in the shakedown racket.
No wonder Brexit was a success! What sane individual would want to belong to this group of lawless gangsters pretending to be an overarching cooperative governmental entity?
Some Americans might privately say that while this is unfortunate for Apple, it isn’t my problem. But the truth is — this is our problem because the EU is effectively reaching into your pocket to grab this taxes.
You might think that Apple will pay this taxes, not you. But this overlooks the fact that if Apple is forced to pay extra taxes by the EU, it can legally and properly record that paid taxes elsewhere on its US tax returns — because no business is required to pay taxes on its profits multiple times. Once is enough. So in the end, the EU is actually reaching into our pockets and taking money from us.
As U.S. Treasury Secretary Jack Lew said yesterday, “I have been concerned that [the EU’s decision] reflected an attempt to reach into the U.S. tax base to tax income that ought to be taxed in the United States.” Secretary Lew is being very diplomatic. The more frank way of saying that is the EU is trying to steal from US taxpayers.
Here is the truth — the EU sees a successful American company and wants to reach into its bank account. It isn’t a lot different than when a thief spots a businessman in a nice suit and targets him for a mugging. The EU’s avarice knows no bounds and so it will use any pretext — even claiming that Ireland does not understand its own tax law — to impose additional taxes. In the process, the EU in effect robs Americans of $14.5 billion.
If this stands, the EU will be reaching into American pocketbooks and wallets every year in greater and greater amounts to pay for their excesses and their failed top-heavy, oppressive regulatory regime model of government. This is precisely why Brexit was a success despite the lies used to defeat it. If Europeans like this system, they can have it. But we must stop them from forcing Americans to fund their choices.
American leaders need to stand up and be crystal clear that this will not stand. This is not Apple’s problem. It is our problem. The EU has found a way to make Americans foot the bill for the EU’s extravagant waste. We must put a stop to this now. There can be no compromise. This is an act of bare and raw criminality and theft hidden behind fancy European accents and official EU letterhead. But if it is allowed to stand, soon Americans will be heavily taxed by foreign powers simply because we allowed it to happen.
Being taxed by a European power across the Atlantic with whom we have no representation takes us backward to before 1776. Let’s not sit by and let that happen.