by Mitch Kokai
Senior Political Analyst, John Locke Foundation
[I]t’s easy to understand why presidential candidate Sen. Elizabeth Warren (D-MA) wants a law that would allow her as president to determine which billion dollar companies live or die: Politicians need money and large companies have it. The law she wants — the Accountable Capitalism Act — would give her hypothetical administration extensive power over businesses. This is bad for retirees and business and is particularly onerous for tech. Not only are tech companies such as Apple and Alphabet cash rich but they are also flush with data and voter attention. Those are two things politicians want to control.
The Accountable Capitalism Act is Sen. Warren’s proposal for federal control of US corporations with more than $1 billion in annual revenue. Evidently non-US companies would be exempt. The federal government would have a say over how these companies weigh business options, who sits on their boards of directors, how directors and corporate officers are compensated, and the extent to which the companies engage in political activities. Any company with “a history of egregious and repeated illegal conduct and that has failed to take meaningful steps to address its problems” in the eyes of Sen. Warren’s political appointees (should she become president) could have its corporate charter yanked. That’s the death penalty.