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Why Does Washington Want to Destroy America’s ‘Magnificent 7’?

Posted on Friday, December 15, 2023
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by Outside Contributor
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Largest American technology companies displayed on smartphone

Nothing exemplifies America’s tech industry dominance in the global economy more than the meteoric rise of what is now being called the “Magnificent 7” stocks – Amazon, Apple, Google, Meta, Microsoft, Nvidia and Tesla. These companies single-handedly account for nearly all the gains in the stock market this year. They – which is to say we as American shareholders who own them – have a net worth of nearly $10 trillion. 

Think about it. None of these gazelles are Japanese, German or Chinese. All seven are American companies. They are globally dominant. They are innovators nearly unrivaled in human history. Amazingly, you would think their best years are behind them, like an aging baseball player. No. They are getting stronger, not weaker. 

As a consequence, they are keeping the 401(k) and retirement plans owned by more than 100 million Americans in the green. 

These are the General Motors, Standard Oil, J.P. Morgan and U.S. Steel of the 21st century. 

Yet, here’s the mystery. In Washington and among the political class, instead of being lionized for their amazing products, they are like Rodney Dangerfield: they get no respect. Worse, Democrats, Republicans and federal regulators have their carving knives out for them. Apparently, making a profit, creating hundreds of thousands of jobs and adding trillions of dollars of consumer welfare are now nefarious pursuits in America where, to paraphrase Calvin Coolidge, the business of America is supposed to be business. Or, to put it in more modern terms, as Jerry Maguire would say, “Show me the money!” These powerhouses have certainly done that.

Many Democrats want to break up Big Tech companies because they are too dominant. They don’t seem to understand that it’s far preferable to be dominant than inferior. There is also a teeny-weeny problem with the accusation that these firms engage in monopolistic behavior. Every one of them has substantially lowered prices for consumers – in cellphones, in social media interactions, in the cost of products delivered right to your door, laptop computers and artificial intelligence. Or how about gaining instant access to almost any information you want? Google puts virtually the entire Library of Congress at your fingertips – and astonishingly for free. The villains! 

Even more absurd is the claim that the multitrillion-dollar size and influence of these companies is squeezing out the smaller entrepreneurial companies that dare compete with them. That happens sometimes. But the bigger impact of these behemoths is to breathe life into literally thousands of startups that attract capital based on the dream that five years from now, they will be acquired at 20 times their current value by, say, Microsoft or Meta. 

Then there are those on the Right who want to tether the Magnificent 7 because they don’t like their leftist politics or the suppression of conservative voices on their platforms. I share their concerns, but it’s a free country, and they own the products and megaphones. There are plenty of alternatives if you don’t like their public policy positions. 

Congress is intent on killing the Google – er, the goose – that lays the golden eggs. Apparently, they’d rather have us all be poorer and buy our cellphones and search engines and robots from China or India.

One of the ironies of calling America’s tech giants the Magnificent 7 is that in the 1960 movie of that title, five of the seven are killed in the last scene. 

In this age of Mach 5-speed innovation, that could eventually happen to Google and Apple – and sooner than you think. It’s not easy to remain the king of the hill. These companies have stayed erect by constantly innovating and giving customers more for less. But when they get knocked down to earth, let’s hope it’s because of the forces of free market competition, not government regulators trying to fix something that surely ain’t broke. 

Here’s the final irony of this war against the Magnificent 7. If the politicians do succeed in driving these epic American companies to their knees, there will be a hullabaloo about how America is losing its tech dominance. Then the knuckleheads in Washington will start passing out billion-dollar taxpayer subsidies to the very companies they now set out to impede and destroy. 

Stephen Moore is a co-founder of the Committee to Unleash Prosperity and chief economist at FreedomWorks. His latest book is “Govzilla: How the Relentless Growth of Government Is Devouring Our Economy.”

Reprinted with Permission from CFIF.org – By Stephen Moore

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John Bass
John Bass
9 months ago

Simple question calls for a simple answer. The Washington elite want to destroy this country and make it a third world country. They hate America and everything it stands for!

Brian
Brian
9 months ago

On one hand it is wonderful that the 7 are prosperous innovative companies.
On the other hand all of them are WOKE to the hilt. They are colluding with the Deep State to control the hearts and minds of the populace. Even to the point of prosecuting and harrassing conservatives and ruining careers and livelyhoods.

David Millikan
David Millikan
9 months ago

Considering that Apple, Microsoft, and Google promote Communism and Censorship with others they should be broken up and FCC Section 230 should be abolished.
I have no pity for companies that use their platforms and technology against the American people and our U.S. Constitutional rights. Especially for a one-sided view only political party known as democrats. Don’t forget that they turn over YOUR personal and private data and information to the DOJ violating YOUR 4th Amendment rights without a warrant. Which brings up another point on why FISA Section 720 MUST expire on December 31, 2023.
Not to mention they wait for months before they tell you that your information has been hacked and they even don’t tell you that they violated your Constitutional rights by giving your personal data to the DOJ without a warrant.
Apple recently very quietly trying to cover their butt by requiring a warrant but if you read their joke of a sneaky policy you will see they still violate your Constitutional rights.
So yes. Just like Ma Bell they have too much power and control and must be broken up.

Jackie
Jackie
9 months ago

I despise politicians (Democrats and RINO’s, mostly) for what they are to our country!! Congress is so tied up with investigations into corrupt this or that, this corrupt agency or that, this corrupt politician or that one that there is no time left to do the business of the country AND then the President decides that he can just rule by executive orders to get his way and get it quickly!!! I feel like we are being destroying from within and I don’t know how to stop it!!!

anna hubert
anna hubert
9 months ago

Fight for dominance and control only these guys are the producers while the government is a useless user that knows nothing about the economy and produces only waste and chaos

Stephen Russell
Stephen Russell
9 months ago

DESTROY THE 7 on censorship alone : Google, MS , Meta

M. Eiford
M. Eiford
9 months ago

They also OWN the Politicians.

Bill
Bill
9 months ago

The corruption is so blatant that they obviously want their cut.

Gib
Gib
9 months ago

Left unchecked, the damage the wokeness of these companies is causing the American people far outweighs all their benefits! Our democracy and personal freedoms are far more important than the financial benefits derived from these monopolies.

johnh
johnh
9 months ago

This article does not address the most important issues the world is facing today .

Robert Zuccaro
Robert Zuccaro
9 months ago

They want to rule the message not have to ask these companies to censor everything else but the message they want out. Like “COVID shots keep you from catching COVID”….

Robin W Boyd
Robin W Boyd
9 months ago

Todays Progressive controlled government wants to destroy literally everything in the U.S.

Casey C Matt
Casey C Matt
9 months ago

Why not allow the citizens the right to consider Chinese products rather than outright banning phones and the like from China which merely makes our manufacturers fat and lazy as they then dont have to compete with foreign companies.
Alas we are too lazy to even bother in a real world competition. We can’t make a phone the quality of Huwaiii (or however its spelled), so we ban their import? That says a lot about the good old “American Spirit”.
And as for breaking some of these monstrous mega corporations up. If that hurts their market share then perhaps we might live to see the return of smaller independent retailers who simply cannot compete with the likes of Amazon and Walmart.
We broke up Bell Telephone and what resulted? Phone service at a fraction of what it once was.
We cannot allow these mega corporations to continue to exist as they are. Already they are in a fascistic relationship with our government and through our “democratic” process are informing us of what is and what isnt truth and controlling what “they” dont consider to be true by censorship.
To hell with this mad notion of a so called “magnificent 7”,

Chuck
Chuck
9 months ago

AMAC needs to hire someone else to preview articles for presentation here

A Voter
A Voter
9 months ago

If you’re willing to get rich off the companies promoting communism, then you are a communist.

GTPatriot
GTPatriot
9 months ago

Well for the time being, even with these 7 techs doing so well, I’ll stay with the tried and true petro stocks ( Chevron), Invesco ( which is the composite NASDAQ), big 3 auto, Honda, Toyota and others. I always ask myself “what would Warren Buffet and Charlie Munger do “. No crypto or AI for me for many years.

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