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The GOP pretends to break up with Corporate America

April 07, 2021

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Today's Agenda

Republican Friendship Ended With Corporate America

Friendships often end with either the silent treatment or a violent blowup. Not often enough do they end the way Asif Raza Rana terminated his friendship with Mudasir seven years ago:

The major drawback to this approach is that such a grand pronouncement gives your ex-friend a sense of lingering importance that a quiet ghosting or punch in the nose might not. In fact, Asif seemed to be trying a little too hard to get Mudasir's attention. Sure enough, not long after:

All's well that ended well for Asif and Mudasir. It will probably be the same for another BFF pair undergoing a dramatic public breakup right now: the Republican Party and corporate America.

For decades, Republicans have lavished companies with tax and regulation breaks, and companies have lavished them back with campaign contributions. But Donald Trump's presidency strained that symbiosis. And lately Coca-Cola, Delta and other companies have (belatedly) spoken out against Georgia's new election law, inspired by Trump's made-up election grievances, which seems designed to frustrate Black voters. Mitch McConnell and other Republicans have responded by publicly blasting companies that were once their best friends.

But Conor Sen suspects that, like Asif, the GOP protesteth too much. Republicans learned a while back to use outrage to drive voters to the polls in off-year elections, and in this cycle the role of scapegoat will apparently be played by corporate America. If he's right, then stunts such as being performatively enraged with the national pastime will become commonplace for a while. One conservative is even calling for an end to "corporate welfare," channeling Elizabeth Warren to rile up the right.

Corporate America doesn't exactly have a natural new best friend in the Democratic Party, though. For example, President Joe Biden and Treasury Secretary Janet Yellen are pushing the world to clamp down on corporate tax evasion. David Fickling suggests this crusade is as much a threat to the corporate world order as Trump's trade war was. Given the vested interests involved, it may be just as unsuccessful. Still, companies aren't thrilled. Meanwhile, there are already signs of Republicans quietly trying to regain their friendship. 

Further Politics Reading: 

Saudi Arabia's New Look

In some very specific ways, Saudi Arabia is one of the luckiest nations on Earth. It's sitting on an ocean of oil that has made it wealthy, powerful and relatively stable for decades. You'd think the slow death of oil demand would mean the slow death of Saudi Arabia. But it's still fabulously lucky, David Fickling points out, given how well-positioned it is for an age of greener energy. It just needs to harness its ample sunshine, carbon-capture capabilities and other natural resources, while still being able to cheaply meet even flagging oil demand for a long time to come.  

Further Saudi Reading: A new deal with the Saudi government would make an Aramco global IPO a non-starter. — Liam Denning 

How Not to Win a Cold War

A potential irony of America's new cold war with China is that misguided animosity toward Chinese people and other foreigners could be the thing that makes America lose the war. As Noah Smith explains, to keep beating China in innovation, the U.S. must keep welcoming skilled immigrants, including from Asia, encouraging higher education and automating the workforce. Too many Americans hate all of that stuff, and if they achieve critical mass, then America could lose its status as the world's R&D department.

Further Cold War Reading: China's latest five-year plan is refreshingly humble in its ambitions. — Anjani Trivedi 

Telltale Charts

Florida and other parts of the country have a toxic phosphate tailings problem. America has a rare-earths shortage. David Fickling suggests the U.S. government could solve both problems at once.

Further Reading

Biden is right to send more aid to Central American countries, but targeted assistance and economic development are necessary, too. — Bloomberg's editorial board 

Europe still needs a unified banking sector, with better supervision and deposit insurance and less nationalism. — William R. Rhodes and Stuart Mackintosh 

Don't even bother voting on shareholder issues until reform makes such votes binding. — Michelle Leder 

The pandemic has many of us getting more fresh air than usual. We need to keep this up, for our health. — Sarah Green Carmichael 

ICYMI

DoorDash workers are gaming the algo for more pay.

Fasting, keto and sugar avoidance can make you more productive.

Beware of trades involving fake cattle.

Kickers

FINALLY: You can watch Soviet TV's "Lord of the Rings" adaptation. (h/t Scott Kominers)

How do you mine Bitcoin on a Game Boy? Very, very slowly.

RIP to Yahoo Answers.

How Elizabeth Loftus changed the meaning of memory.

Notes: Please send answers and complaints to Mark Gongloff at mgongloff1@bloomberg.net.

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