There will be tens of thousands of words written this week about Donald Trump’s first year as President of the United States. His first 12 months has been characterised by a gummed-up domestic policy and letting the military apparatus do what it wants elsewhere in the world. In Europe, we may look askance and turn our noses up at the sheer grubbiness of it all. Within the EU we may find ourselves silently smug about how different things are here in Europe. There are however echoes of Trump’s vision for Making America Great Again (MAGA) among the 27 members of the Union. In Hungary, Poland and Austria, right wing parties lay bare the ugly face of late capitalism with anti-immigration measures and welfare retrenchment. In the UK, the unfolding Brexit mess brings with it a number of considerable political and economic costs yet to fully explored. Anyone living near the border in Ireland could attest to this. Similarly, people in Ireland are not immune to the midnight tweetings and wild policy pursuits of a leader who may not see out his first term without a dirty political fight. Trump and his cabinet are determined to bring jobs back from overseas to employ US residents as a way of shoring up working class support. It is not clear yet how US capitalists are taking to this idea but even a moderate success in this regard would make a considerable difference to the Irish economy, north and south.
Two incidents in recent weeks point to how this may unfurl in Ireland. Firstly, Apple is planning to build a data centre near to the town of Athenry, Galway. The planning application has been upheld but not without a chance for the High Court to review a decision to allow An Bord Pleanala’s decision to have effect. Two residents sought a review of the decision on a technical ground. They claimed that the EIA was based on eight halls of data servers and not only one as sought in the application. Other people in Athenry have been out marching in favour of the planning application, citing that jobs would be lost to some other location if local politicians do not support the application. Not unrelated to these movements of course is the fact that the Irish state will bend over backwards to accommodate a company that owes us at least €13,000,000,000 in unpaid tax. On his return from a recent US visit, the Taoiseach Leo Varadkar committed to Apple, indicating that his government will do anything to curry the company’s favour. It has been reported that “the Cabinet is developing a detailed position on the role and importance of data centers, including on their designation as strategic infrastructure”. It is not at all clear how many jobs would result in the Athenry project (perhaps 100?) but it will be a significant drain on our electricity grid.
During this time, across north America, cities have been competing for Amazon’s second headquarters. Mexican, Canadian and US cities have been offering tax breaks, highway construction and whole city blocks in bids to ensure Bezos’s company would land in their turf. As an aside, it was not radically different under previous administrations, Obama’s included. ‘Infrastructure’ is fast becoming code for the reshaping of entire cities using privately held surplus. This resonates in Ireland where a deeply embedded cluster of policies lowers corporate tax rates and environmental monitoring to ensure foreign direct investment. In Ireland we like to convince ourselves that FDI is because we offer an educated and English-speaking workforce, implicating all schoolchildren in an ideological project since at least the mid-1970s. In reality, as the Panama Papers, Wikileaks and the Paradise Papers all make clear, Ireland’s economy is best in class for tax avoidance. International best practice eludes our health service but in the matter of squirrelling money forced out of people’s labour and pockets, we are among the elite. (What is it about islands and tax avoidance?)
Global finance and money moves quickly around the world, landing in different places in different ways. Regional geographers and others examine this unevenness in great detail. We need, however, to connect political struggles like the election of Trump and the re-emergence of reactionary governments in the EU with this unevenness. The attraction of high quality jobs can no longer act as cover for large scale tax avoidance and politicians in Ireland may have to realise that quicker than they think. The game with the highest stakes is that of money flow derived from profit. The implications of MAGA are being felt in east Galway and elsewhere in the Republic. This is not because of what elected politicians have or have not done in Galway but because of what happens in Washington and California.