Public policies that affect the terms of trade with other nations, including tariffs, have profound effects on the structure of markets, ranging from unwarranted protection for domestic monopolies to the promotion of transnational trading companies that exploit labor, evade environmental standards, and create dangerously overextended supply channels. At the same time trade policy plays an important role in strengthening or weakening America’s geopolitical position in the world, making trade, competition policy, and national security intrinsically linked.
Open Markets Senior Fellow Matthew Stoller and Lucas Kunce published a feature on The American Conservative exposing the devastating history of military monopolization in America. They describe how Wall Street has given foreign rivals such as China growing leverage over our defense industry by usurping what used to be American manufacturing, not only in telecommunications but in various sectors which are key to our national security.
Open Markets Institute Senior Fellow Matt Stoller published an op-ed in the New York Times condemning Facebook’s plan to create a new global currency. Stoller writes, “Sorry, but no thanks: We should not be setting up a private international payments network that would need to be backed by taxpayers because it’s too big to fail.”
The Open Markets Institute applauds the House Armed Services Committee, Congressman Ro Khanna, and Congresswoman Jackie Speier, for passing amendments to crack down on defense contractor monopolists, as part of debate over the National Defense Authorization Act.
In a recent interview, Facebook COO Sheryl Sandberg deployed a talking point that other platform monopolists are increasingly using. Don’t break up Facebook, she said, because that will just allow Chinese companies to come in and fill the void. What’s wrong with this argument? It presents a false choice.
Welcome to The Corner. In this issue, we discuss the idea that the best way for Americans to counter the power of Chinese tech giants is to accept the concentration of power by corporations like Google and Facebook.
Open Markets fellow Beth Baltzan testified as a witness to the House Ways & Means Committee on “Enforcement in the New NAFTA.” Her testimony, based in part on a piece she published in the Washington Monthly, pointed to the principles unratified Havana Charter as a solution to global trade. The charter “included rules that guaranteed workers’ rights, provided protections against destructive foreign investor behavior, and required trading nations to abide by anti-monopoly rules.”