The outright seizure of foreign assets held in the U.S. has repeatedly turned to economic sanctions in the postwar era.
In recent years, however, the United States has increasingly been putting its thumb on the scale for ideological reasons, taking assets by ethically and legally dubious means, and imperiling its reputation as a safe haven for deposits and investments.įrom the 62-years-and-counting trade embargo against Cuba to the severing of ties with Iran following the hostage crisis to the isolation of South Africa to punish apartheid, the U.S. Individuals and companies rely on government to maintain order, keep conditions like interest rates stable, and protect accumulated assets from bank failures, devaluation, fraud and theft, without regard for the political orientation of their owner. What happens when governments seize property in order to exert political pressure - or out of greed?Ī major, arguably the primary, incentive of the capitalist system is that it offers the potential of accruing wealth. Adam Smith wrote that the efficiency of markets relies on the free movement of goods.
