What is true for people is also true for the other tax-paying entity, the company. And what Barack Obama has done yesterday, in arbrtiarily confiscating assetts without due process or any form of contract, is to raise the fear of arbritary confiscations from other businesses which may displease the mob in the future. This is contrary to the principles of the rule of Law. This is not a defence of BP, who appear to have been reckless, but no-one thinks they are not already doing everything in their power (they are of course denied some assets for political reasons) to clean up the mess, and they have paid nearly all the claims for compensation they have already received. BP was emphatically NOT shirking its responsibility, and has endured a politically motivated lynch mob mentality orchestrated from the White house. Obama knows what he is doing is illegal and unconstitutional. BP could demand that its contracts are met, that Haliburton and others pay their share, but this would destroy them politically.
The risk of doing business in the USA is already great, and has got much, much worse. Many non-US companies already refuse to have a US shareholder on their books (next time you receive a prospectus, look for the words “not for distribution in the USA” on the front). Thus the capital markets of the world are closing to US interests. Soon internationally minded US companies will start moving their brass plaques from Delaware to London, Frankfurt, Dublin, Dubai, Hong Kong or other more kindly jurisdictions. Americans may not notice this while their domestic capital markets are wide and deep, but they may find their next recession deeper and longer as the once great nation slides back into the protectionism that caused the last depression.
Obama. By pandering to the mob by offering to keep his “boot on the throat” of BP and demanding extra judicial compensation (which WILL be used as a political slush-fund) has become the worst president in American History. And given who he followed, that was always going to be tough. A president of less historical renown (no peace prize for Mr Coolidge), but much greater stature said “the Business of America is Business“.
http://bracken.uk.com/wp-content/uploads/2017/07/logo-2.png00Malcolm Brackenhttp://bracken.uk.com/wp-content/uploads/2017/07/logo-2.pngMalcolm Bracken2010-06-17 10:48:002017-07-21 01:44:14America is Closed for Business.