Opinion: Antitrust laws and national security
Once a trailblazer for American innovation, Microsoft now dominates the government IT sector, providing email and office services for roughly 85% of federal agencies. This market share is not the result of free market competition, but rather the outcome of restrictive licensing practices and other restrictions on fair competition. Such practices discourage innovation, jeopardize creativity and challenge the important core principles that promote competition in the free market.
Overreliance on a single provider is not merely theoretical. In 2023, Chinese state-backed hackers exploited vulnerabilities in Microsoft Exchange Online to breach sensitive government communications. Emails from senior officials, including the U.S. Ambassador to China and the Secretary of Commerce, were compromised. A subsequent review by the Department of Homeland Security revealed a series of avoidable errors by Microsoft, highlighting how a lack of competition can result in significant challenges.
However, something even more disconcerting has arisen. Microsoft's operations in China raise some troubling questions. In order to operate within China's borders, the company must comply with the nation's stringent cybersecurity laws, which require foreign tech companies to share sensitive information with the Chinese government. This compliance with their laws allows a foreign country to create a potential backdoor into U.S. systems, which puts our national security at risk.
It's time to act. Antitrust laws exist not to penalize companies for their success but to ensure that those companies earn that success through innovation and not by leveraging market dominance to exclude competitors. It is about preserving the integrity of the free market by addressing the challenges posed by monopolistic practices. America's technological infrastructure, economic competitiveness and national security are at risk.
To address these challenges, we must call upon our congressional leaders and regulatory agencies to diversify government IT providers.
First, let's prioritize creating an environment for a competitive procurement process that allows multiple companies to compete for government contracts on a level playing field. This will enhance innovation and fair competition.
Second, encouraging transparency is important. Companies entrusted with substantial government contracts must be held responsible for security lapses and operational shortcomings.
Third, cybersecurity standards and those who are entrusted with protecting sensitive government data should be subjected to stricter security requirements.
Finally, it is imperative that our policymakers investigate potential anti-competitive practices and ensure that companies with large government contracts have their licensing agreements examined to maintain compliance with antitrust laws.
We know that the strength of our nation depends on the creativity and ingenuity of individuals and companies competing to build a better future. It's time to hold Microsoft — and any company that jeopardizes the free market — responsible. By insisting that those elected to represent us uphold antitrust laws, we can protect against these unchecked monopolies and ensure that our tech industry remains competitive, diverse and secure, while also remaining grounded in the conservative principles of fairness, responsibility and opportunity. Let's work together to ensure our tech industry reflects these values and protects our national interests.
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(Source: NY Fed) The introduction of new tariffs risks higher inflation. For more, read: 😬 ⛽️ Gas prices tick higher. From AAA: "Gas prices fluctuated slightly this past week with the national average for a gallon of regular going up by two cents to $3.16. Crude oil prices are hanging in the mid $60s per barrel, keeping pump prices steady. Supply remains abundant, as OPEC+ — a group of oil-producing countries — recently announced it will be boosting production again next month, following several other increases this year." (Source: AAA) For more on energy prices, read: 🛢️ 🏠 Mortgage rates tick lower. According to Freddie Mac, the average 30-year fixed-rate mortgage declined to 6.63% from 6.72% last week. From Freddie Mac: "The 30-year fixed-rate mortgage dropped to its lowest level since April. The decline in rates increases prospective homebuyers' purchasing power, and Freddie Mac research shows that buyers can save thousands by getting quotes from a few different lenders." 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Until we get more clarity, here's where things stand: Earnings look bullish: The long-term outlook for the stock market remains favorable, bolstered by expectations for years of earnings growth. And earnings are the most important driver of stock prices. Demand is positive: Demand for goods and services remains positive, supported by healthy consumer and business balance sheets. Job creation, although cooling, also remains positive, and the Federal Reserve — having resolved the inflation crisis — shifted its focus toward supporting the labor market. But growth is cooling: While the economy remains healthy, growth has normalized from much hotter levels earlier in the cycle. The economy is less "coiled" these days as major tailwinds like excess job openings and core capex orders have faded. It has become harder to argue that growth is destiny. Actions speak louder than words: We are in an odd period, given that the hard economic data decoupled from the soft sentiment-oriented data. 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There are also the dreaded unknowns. Any of these risks can flare up and spark short-term volatility in the markets. Investing is never a smooth ride: There's also the harsh reality that economic recessions and bear markets are developments that all long-term investors should expect as they build wealth in the markets. Always keep your stock market seat belts fastened. Think long-term: For now, there's no reason to believe there'll be a challenge that the economy and the markets won't be able to overcome over time. The long game remains undefeated, and it's a streak that long-term investors can expect to continue. A version of this post first appeared on Sign in to access your portfolio
Epoch Times
an hour ago
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The Man Who Shaped and Saved the Constitution: John Marshall
'What George Washington was to American politics, John Marshall was to American justice.' Taken from the first paragraph of Joel Richard Paul's book ' Without Precedent: Chief Justice John Marshall and His Times,' that assertion won two thumbs up from most American legal scholars. For 34 years, Marshall guided the Supreme Court and, consequently, the Constitution through the roiling waters of political controversies and fierce antagonisms. Although the Marshall court ruled on several cases profoundly impacting American law and history, today most of us remember him for 'Marbury v. Madison,' arguably the most important case in U.S. history as it established the Supreme Court as the vehicle for judicial review and constitutional interpretation, which was and remains its paramount function.
