US Supreme Court and Trump Tariffs
The US Supreme Court recently highlighted that the Trump tariffs infringe upon Congressional prerogatives. However, the core issue extends beyond the tariffs themselves.
Beyond the Physical Economy
- The 1977 International Emergency Economic Powers Act (IEEPA) was designed for a physical economy.
- Today's economic power is dominated by intangible assets such as software, data, and algorithms.
- Approximately 90% of the largest firms' market value is now in intangible assets.
The Intangible Economy
While the debate on tariffs is ongoing, the real economic power has shifted to server farms and machine learning models.
- These systems often develop without Congressional debate or direct human design.
- The intangible economy progresses with the speed of a viral meme, challenging regulatory frameworks.
Implications for Governance
The court ruling marks a shift from traditional economic disputes to a focus on decision-making in the intangible economy.
- Future economic battles will center on who authorizes decisions made by algorithms.
- There is a need for a balanced approach between executive actions and judicial safeguards.
Lessons for India
India is rapidly advancing in the intangible economy with advancements in DPI, AI, and fintech.
- Coordination between executive enthusiasm and judicial oversight remains critical.
- Emphasizes the importance of developing a shared doctrine for governance in the intangible era.
The overarching challenge is to ensure institutional legitimacy in a world where significant economic decisions may occur without traditional oversight mechanisms.
