“political crap – well Cook-ed”

Scandals and no end … – still, there are some that deserve special attention. The Apple-tax avoidance policy is one of peculiar interest – for different reasons:
Think about the following:
I.
I pleaded on different occasions –  not least in connection with the data abuse by Facebook – for their socialisation: there seems to be little point in regulating monopolies – while at first glance tempering – it is a  no-go policy to break up monopolies that actually depend in their very functioning on being monopolies. Socialisation, e.g. state control, does not solve the problem but at least it puts it into a different regulatory perspective:
regulating private entities that are too big or securing democratic control over relevant political bodies, that is the question.
II.
Public control, then, is of course an issue that deserves …, not just special attention but a conceptualisation of the public itself that is serious about …, well , its public character. On this topic we read for instance:
public (adj.)
late 14c., “open to general observation,” from Old French public (c. 1300) and directly from Latin publicus “of the people; of the state; done for the state,” also “common, general, public; ordinary, vulgar,” and as a noun, “a commonwealth; public property,” altered (probably by influence of Latin pubes “adult population, adult”) from Old Latin poplicus “pertaining to the people,” from populus “people” (see people (n.)).
In any case, this is quite different from what we learn about the tax system in Europe and Ireland, reading in the mentioned article (my translation);
Instead, first Lienemeyer has to investigate and understand the Irish tax model as it is applied by Apple, that means first and foremost detective work.
Thus, adding value or or piracy-policies, that is another crucial question.
III.
There is the common saying about milking the cow to limits and it is commonly said that the pitcher goes often to the well, but is broken at last.
There is, in economics, so much talk about value chains – suggesting that the enterprise and country in which the enterprise is located gets a “fair share” – said in another way: as many products today – computers, phones, cars, fridges etc. – are produced in various places, with parts from different countries, the overall value of the product will be distributed between the countries, the contribution of each “valued proportionally”. One point to be considered here is that these value chains are, as Benjamin Selwyn points out, in actual fact poverty chains, the Apple-case clearly gives another good reason to question such concept.
Two passages from the said article in the SZ clearly show the contradiction:
At the time, Ireland replied in a letter to Brussels that Apple’s advanced technology, design and the intellectual property are exclusively rooted, developed and managed in the USA, thus making it impossible to attribute it to the Irish enterprises [enterprises  set up by Apple as mediators, solely dealing with sales]
However, a little later we read the following:
In the view of the head of the department at the EU-Commission it is fact that the Irish Apple-branches run their offices solely in Ireland, have their employees only there and are, thus, ordinary Irish companies. “Then the question is: who is generating the profit? A virtual headquarter or an industrial premise with real people working?” says Lienemeyer. As Apple maintains offices in the city of Cork. this is his conclusion, Apples global business is Irish. Consequently all profit has to be taxed in Ireland.
Ireland and Apple react by being shocked. In their understanding the global Apple-tree with its mature fruits always had its roots in California.
Both, Ireland and Apple see this a affront. At the end, the question is here:
eating the apples and rejecting the tree – is that a feasible option?
To be or not to be, that question needs urgently to be replaced: Who is allowed to define what being is – and who is allowed to determine the conditions of existence of others, of majorities?
Cook, Apple’s CEO, once spoke of ‘political crap’ coming from Brussels. Actually he may be not entirely wrong after all. Leaving the tax scandal aside, there are two fundamental issues that remain without consideration:
First, regulating sick and decaying systems, that are not only undermining like cancer the entire body but already replaced completely the entire body, is hardly enough as cure against the body snatchers.
Second, this requires not least to fundamentally overcome methodological nationalism: as long as we still think in competition between regions and nation states, global capitalism will unfold exponentially – paradoxically in niches of arrogant and sexist plutocracies.

 

Annunci

How to write a bestseller and get a Pulitzer Award?

I am not sure if I missed something, or if it was just a rumor about some things that went wrong around that time?

What makes capital provision work so well in America is the security and regulation of our capital markets, where minority shareholders are protected. Lord knows, there are scams, excesses, and corruption in our capital markets. That always happens when a lot of money is at stake. What distinguishes our capital markets is not that Enrons don’t happen in America—they sure do. It is that when they happen, they usually get ex- posed, either by the Securities and Exchange Commission or by the business press, and get corrected. What makes America unique is not Enron but Eliot Spitzer, the attorney general of New York State, who has doggedly sought to clean up the securities industry and corporate board-rooms. This sort of capital market has proved very, very difficult to duplicate outside of New York, London, Frankfurt, and Tokyo. Said Foster, “China and India and other Asian countries will not be successful at innovation until they have successful capital markets, and they will not have successful capital markets until they have rule of law which protects minority interests under conditions of risk… We in the U.S. are the lucky beneficiaries of centuries of conditions of risk… We in the U.S. are the lucky beneficiaries of centuries of economic experimentation, and we are the experiment that has worked.”

From: Thomas L. Friedman: The World is Flat; New York: Picador: 2007: 332 f.

Well, the Friedmans, be it Thomas or Milton, don’t understand that we face what James Galbraith calls

The End of Normal: The Great Crisis and the Future of Growth

as reviewed here.
One important point is, and that is another way of thinking about the end of the normal, the need to question the normal or at least part of it. Three (we always strive for trinities) essential parts of the normal were: growth, growth, and some form of regulation – and indeed Friedman talks about such regulation. But what he does not say is that this had been about marginal forms of social distribution, limited control of excesses and in particular/not least about securing the conditions of and for growth. It is interesting that even this is now largely taken away. As we know since recently, namely the leak of the TISA-Annex on the Annex on State Owned Enterprises the role of securing the conditions of and for growth is now under the increasing pressure of being finally, formally and completely handed over to the ‘market’. This is globalisation not simply by imposing specific structures and conditions on other countries but by establishing the control
Freedom and democracy – the flattening of the world by fattening the few global players.

Does one ‘super-corporation’ run the global economy? Study claims it could be terrifyingly unstable

The Network of Global Corporate Control – Research Article

The Network of Global Corporate Control – Annex

Indeed, I took up on some of the issues of the supposedly flattened world not only recently in Havana (here for for a background paper), but now again during the Shanghai Forum, presenting on Growth and Development – Complement or Contradiction? Challenges for a Global Agenda– more information can be found here.