TThere's a lot to admire about America here. Some 200 years ago, the great French social observer Alexis de Tocqueville extolled the legacy of our Puritan founders: their commitment to civic virtue, individual self-improvement, and hard work.
Those characteristics are still evident today, but darker features have also appeared alongside them. The United States, which was a 20th century hegemon and still firmly adhered to democracy, has changed. It has transformed into an imperial power indifferent to democracy but willing to demand economic tribute from its vassals.
No country has been more a vassal state of the United States than Britain. This evolution is laid out in an eye-opening book. Vassal States: What happened to America? running around uk. President Donald Trump's impending inauguration, accompanied by threats to impose tariffs and lower commitments to NATO unless client nations further comply with his wishes, has shaken Western capitals. But as author Angus Hunton carefully documents, this is nothing new. The United States has maintained an America First policy for decades. President Trump is only elevating a long-standing phenomenon. Changing this situation will require more than appointing the crooked Lord Mandelson as British ambassador to the United States. It's about recognizing what's going on and then fighting fire with fire. It's time to put Britain first.
Mr Hunton writes that 25% of the UK's GDP is made up of the sales of the 1,256 US multinational companies operating in the UK. This includes breakfast cereals, soft drinks, car manufacturing, taxis, food delivery, online shopping, travel, coffee, social media, and entertainment (Kellogg, Coca-Cola, Ford, Uber, Deliveroo, Amazon, Expedia, Starbucks, X) This includes everyday areas such as: , Netflix) – knowledge-intensive sectors ranging from data (Apple, Meta/Facebook, Google, Microsoft) to finance (Goldman Sachs, Morgan Stanley, BlackRock). Every time he unpacks the statistics and scope of exploitative control, it's dizzying.
Because this is not benign. The UK is so blind to the negative aspects of loss of control, from tax avoidance to the stripping of strategic skills, that it is surprising that, as Mr Hunton writes, politicians are unable to control this process. He cheerfully praises the city for being “open for business.'' Thus, over the past two decades there has been a tsunami of takeovers of great British technology companies by US companies and private equity firms. For example, the groundbreaking artificial intelligence company DeepMind is now owned by Google. Cyberspace pioneer Darktrace was recently acquired by US private equity firm Thoma Bravo, and biotechnology company Abcam was acquired by Washington DC-based Danaher. Spend $12.7 billion on Cambridge University companies Even in 2024 alone. At Oxford University, the newly established luxury Ellison Institute, funded by Oracle founder Larry Ellison, is poised to launch a U.S.-like attack on its intellectual property, spinouts and startups. There are concerns that there may be.
After newsletter promotion
Some decision-making and research will remain in the UK, but Mr Hunton has observed that post-acquisition headquarters have increasingly moved to the US. We bid farewell to our significant presence in space as Inmarsat was acquired by California's Viasat and the UK was downgraded from a potential tier 1 space power to tier 3. High-tech 3D printer Meggitt has transitioned to Cleveland-based Parker Hannifin (along with Chobham and Ultra, part of what was a defense and aerospace “crown jewel” identified by the U.S. International Trade Administration in 2019) However, it is now entirely US-owned), and Worldpay, which was spun out from NatWest, is now headquartered in Cincinnati. Not only was important intellectual property lost, Hunton reported. Immigration makes cities across the United States more prosperous, something the British can only dream of in terms of geographic equity.
Technology entrepreneur and financier Hermann Hauser is the co-founder of Arm, currently listed in New York, which started its operations in the UK and is now our third largest listed company. However, he writes that there are three litmus tests for technology acquisitions. We still control British technology. Is there access from other countries? If not, are UK sellers guaranteed unrestricted and secure access? If the answer to all three is no, then there is a risk of becoming a new client state for these tech giants. And a new kind of colonialism could be happening.'' It's happening while we're watching.
Next is the US attitude towards taxes. The tax departments of US multinational corporations are seen as profit centers, selling to the UK from low-tax Ireland, channeling profits through tax havens often controlled by the UK, or through transfer pricing. Taxes are averaged using all available means, including artificially lowering profits in the UK. It represents only 5% of profits. If the effective tax rate on profits alone, as we know it, was just 15%, Britain would be at least $10bn (£8bn) a year richer. The actual number will almost certainly be further halved. And if the UK dares to propose even modest amendments, such as the 2% digital services tax proposed in the 2018 budget, it will have to be withdrawn due to intense lobbying from the US government. You won't get any more.
What is so disappointing about this whole story is that if we had more courage and determination to put Britain first, we could be Europe's tech powerhouse, with a dynamic economy and a growing tax base. We have many of the necessary assets, from great universities to huge pools of risk capital, that have enabled us to fuel America's growth. Of course, the United States is a powerful magnet because of its size and dynamism, but not as much as we are spoiled.
Mr Hunton said that to fight back, the UK first needs to stop the decline in stocks, and the first step is to reduce both profitable US direct investment (starting business in the UK) and destructive US direct investment (very large numbers of (acquisitions of high-tech companies). intellectual property and their export to the United States). Second, the UK, like the US, must get serious about R&D and innovation and start building its own group of high-tech growth companies. Like Americans, we must invest in our college education, not ignore it. And we need to recognize that an effective counterattack means making common cause with Europe.
Amen, but the omens are not very good. Nigel Farage portrays himself as some sort of national savior, rather than being called out as a de facto US vassal aided primarily by a fifth column media seeking to strengthen our vassal state. are. The Labor government appointed Claire Barclay, CEO of Microsoft UK, as chair of the Industrial Strategy Council, while the BlackRock board met in Downing Street and received five-star treatment. Ta. There is little momentum for strengthening cooperation with the EU.
To be fair, the government's planned industrial strategy does show potential for a better direction. And the good thing about Trump's impending inauguration is that he embodies the essence of our vassal status. How about Make Britain Great Again instead? Progressive and wealthy donors – Dale Vince? Gary Lubner? Clive Cowdery? – Must ensure copies are sent to all MPs and peers. vassal state. Our true American friends will applaud us for trying to rebalance our relationships. After all, that's what they would do if the boots were reversed.
Source: www.theguardian.com
