Monopolies

A company that produces a really attractive product or service and does so efficiently and thus at lower cost than can potential competitors, will grow and potentially dominate and even monopolize that market. It is tempting for such very successful companies to seek laws and regulations that protect their dominance by making it harder for potential competitors to enter those markets with lower costs. But as a company enjoys its increasingly protected monopoly, it tends to lose the edge that put it on top in the first place. Its drive to innovate is reduced. It tends to become lazy and even corrupt in the defense of its monopoly position. While economist differ on what policies are best when dealing with a monopolist, there is generally consensus that monopolies are bad in the long run.

The same is true of countries that grow to international dominance. With the collapse of the Soviet Union and the resulting unipolar dominance of the United States, the U.S. increasingly behaves like a bully and disregards the rules of international commerce and diplomacy that it helped establish and demands that others follow.

The United States was founded on an extremely well-conceived set of principles designed to protect its individual citizens to lead their own lives and pursue their own flourishing as they each saw fit. The American constitution limited what the government may do to enumerated powers and provided checks and balances on the actions of each branch of government. For the most part these restrictions have held, and our government has provided the defense, protection, and framework needed for our individual flourishing.

But as we gained strength and dominance and especial during our brief period of unipolarity, we increasingly violated the rules we demanded that others follow. For example, we joined others to sponsor the World Trade Organization to establish the rules of fair trade in order to maximize the benefits of higher incomes for everyone made possible by trade.  We properly challenged China for dumping its excess steel on the market as a violation of WTO rules. But President Trump’s tariffs on Canadian, European, as well as Chinese steel in the name of national defense violated WTO rules as well as common sense. And how do President Biden’s multibillion dollar subsidies for domestic semiconductor chip production differ from “China’s state-led, non-market approach to the economy and trade” we object to?

Though the U.S. won most of the cases it brought to the WTO Appellate Body, the WTO’s dispute resolution body, that Body has not been able to function since December 2019 because the US has blocked the appoint of new judges.

But it gets worse. We have rightly condemned Russia for violating the sovereignty of Ukraine by invading it, while overlooking our equally illegal violations or attempted violations of the sovereignty of Cuba, Iraq, and Libya among others.  

But it gets worse still. In reaction to Canadian Prime Minister Justin Trudeau’s accusation that the government of India was responsible for the assassination of Canadian Sikh activist Hardeep Singh Nijjar on Canadian soil, Adrienne Watson, the White House National Security Council spokesperson, said “targeting dissidents in other countries is absolutely unacceptable and we will keep taking steps to push back on this practice.” Had she forgotten the dozens of such assassinations carried out by the U.S. on foreign soil? Of the more recent was the drone attack in Yemen that killed Anwar al-Awlaki and his young grandson on September 30, 2011. Al-Awlaki was an Islamic scholar and lecturing living here in Arlington Va.  Our assassination of Qasem Soleimani in Baghdad on January 3, 2020, again with a drone attack, raised considerable international criticism. Soleimani was the Commander of the Quds Force of the Islamic Revolutionary Guard Corps. We were not at war with either Iran or (at that time) Iraq.

With our near monopoly of political power in the world, the ability of our defense industry to protect and promote its profitable supply of weapons is strong. We can be thankful of their capacity to produce the weapons that defend us. But our military industrial complex that President Eisenhower warned us of profits however and by whom ever its products are used. Its profits are strengthened and sustained by our forever wars and those we supply. Ike knew of what he spoke.

Of the 2023 FY budget (ending next week) of $1.7 trillion in discretionary spending (yes trillions if you can swallow that), $860 billion (or 50.6%) was for defense. Half of that was paid to the defense industry. Most of that is for weapons. But they provide other services as well. When I was living in Baghdad as part of the Coalition Provisional Authority in 2004, Halliburton (the company Dick Chaney had been Chairman and CEO of) provided our meals in the Embassy mess hall (Saddam Hussein’s Presidential Palace). Lockheed alone gets more of its annual revenue from the federal government than the annual GDP of all but the top 81 countries (about half) in the world.

While our constitution’s checks and balances go a long way to protect our government from capture by the defense and other industries, the honestly of our elected representatives (devotion to the interests of their constituents and our country rather than to the size of their corporate contributions) still matters. It is hard to understand otherwise why we send our sons and daughters off to fight and die in foreign lands or encourage Ukraine to fight to the last Ukrainian.

Our government and foreign policy have been corrupted by our unipolar dominance. But our very arrogance—abide by our rules while we do what we want—has and will increasingly weaken our global influence. There are faint signs that we are being to recognize this new reality and tempering our behavior. The demise of our monopoly behavior and our return to fair and proper competition should be encouraged.

It makes sense to restrict trade of important military products. National Security Advisor Jake Sullivan was right to claim that we should aim for a “small yard with a high fence” to protect military supplies while otherwise maximizing beneficial trade. But the profit motive of our defense industries to expand the size of that yard as much as possible is strong and has been and will be hard to resist.

Extra-judicial killing

We think of autocratic or despotic regimes as those operating above the law or unconstrained by the rule of law.  It does not surprise us when people like Joseph Stalin, Saddam Hussein, or Colonel Gaddafi order the death of those they think threaten their rule.  In civilized, democratic countries we have legal restraints on the use of such power by our leaders. Laws define the processes by which the lives and liberties of those living in our countries may be arrested and jailed—the nature of the evidence needed—the requirements of an independent judiciary system to judge that evident—the right of self-defense, etc.

We would be shocked at the idea that the President of the United States could order the murder of an American citizen without any of the due process required by the law. Why then was there so little out cry when President Obama declared that he has the authority to order the murder (assassination) of American’s that he considers dangerous to our Republic. It is shocking and dangerous that this declaration did not bring millions of American’s into the streets in protest. The reason it did not, I believe, is not that 9/11 has turned us into cowards willing to give up important freedoms for more security. It is, rather, that our traditions of constitutional constraint on government, with its checks and balances and explicit protections of our private, individual rights, makes it difficult for us to imagine the serious abuse of power by our President and our government.

It is not that Presidents have not from time to time abused their power (see for example my review of Arthur Burns’ Secret Diary about Richard Nixon: http://www.compasscayman.com/cfr/2011/07/19/Inside-the-Nixon-Administration–The-Secret-Diary-of-Arthur-Burns,-1969-1974/). However, such abuses have never taken root and become acceptable. Therefore we don’t really take seriously that the President would abuse the new right he is claiming in the interests of our security. Today’s quiet acceptance of his declaration of the right to murder dangerous Americans is thus almost (almost) understandable. It is unimaginable that the President would use such power in any way other than its intended purpose.  But such faith is naive and dangerous. The relaxation of due process today, makes easier further erosion in the future. The weakening of our liberties, which reside in restraining our government as much as our neighbors, is a slippery slope. Presidents do not easily abuse powers they don’t have and can learn to abuse those they do have.

Attorney General Eric Holder attempted to justify these extraordinary powers in a speech at the Northwestern University law school earlier this month. As reported by Congressman Ron Paul:

“Attorney General Holder bluntly explained that this administration believes it has the authority to use lethal force against Americans if the President determines them to be a threat to the nation. He tells us that this is not a violation of the due process requirements of our Constitution because the President himself embodies ‘due process’ as he unilaterally determines who is to be targeted. As Holder said, ‘a careful and thorough executive branch review of the facts in a case amounts to ‘due process.’’ That means that the administration believes it is the President himself who is to be the judge, jury, and executioner.

“As George Washington University Law Professor Jonathan Turley wrote of the Holder speech:

“’All the Administration has said is that they closely and faithfully follow their own guidelines — even if their decisions are not subject to judicial review. The fact that they say those guidelines are based on notions of due process is meaningless. They are not a constitutional process of review.’”

“It is particularly bizarre to hear the logic of the administration claiming the right to target its citizens according to some secret selection process, when we justified our attacks against Iraq and Libya because their leaders supposedly were targeting their own citizens! We also now plan a covert war against Syria for the same reason.

“I should make it perfectly clear that I believe any individual who is engaging in violence against this country or its citizens should be brought to justice. But as Attorney General Holder himself points out in the same speech, our civilian courts have a very good track record of trying and convicting individuals involved with terrorism against the United States. Our civilian court system, with the guarantee of real due process, judicial review, and a fair trial, is our strength, not a weakness. It is not an impediment to be sidestepped in the push for convictions or assassinations, but rather a process that guarantees that fundamental right to be considered innocent until proven guilty in a court of law….

“Sadly, many conservative leaders were silent when Republican President George W. Bush laid the groundwork for this administration’s lawlessness with the PATRIOT Act, warrantless wiretapping, indefinite detention without trial, and other violations. Similarly, as Professor Turley points out, ‘Democrats previously demanded the ‘torture memos’ of the Bush administration that revealed poor legal analysis by Judge Jay Bybee and Professor John Yoo to justify torture. Now, however, Democrats are largely silent in the face of a president claiming the right to unilaterally kill citizens.’ The misuse of and disregard for our Constitution for partisan political gain is likely one reason the American public holds Congress in such low esteem. Now the stakes are much higher. Congress and the people should finally wake up!”