Starbucks giving up

Unlike the plucky fighter pilot of the same name, Starbucks the corporate coffee giant has wilted and turned like Monty Python’s King Arthur.

According to Channel 4:

Given the week ahead, Starbucks may have been trying to pre-empt criticism by issuing a statement saying: “Starbucks has complied with all the tax laws in this country but has regretfully not been as profitable as we would have liked.”

“We have listened to feedback from our customers and employees, and understand that to maintain and further build public trust we need to do more,” Starbucks said. “As part of this we are looking at our tax approach in the UK.”

© Diego Duarte Cereceda

Starbucks could at least have had the courtesy to duke it out for one Saturday lunchtime against UK Uncut. I would have cheered if, in a statement of uncomfortable truths, Starbucks had announced that due to public misconceptions we have been forced to restructure our tax affairs in order to voluntarily pay additional UK Corporation tax and would therefore, as a direct result, be adding 10p to the price of a coffee in order to protect staff wage increases inline with inflation. Such would be the policy of Gibbo’s Coffee Emporium public relations department, had it existed. As it is, Starbucks’ new approach to public relations helps to conceal the fact that it’s actions were ultimately in everyone’s best interests. They might not have made the case that tax is better spent by them, which would be easily arguable to anyone familiar with Mises, but would at least have exposed the real cost of tax to the UK public and refocused the debate.

What I’ve learned from following this story is that the UK public discourse is narrow-minded and hubristic when it comes to taxation. You often hear people, colleagues, family, charities, talking about what they think should be done with tax money. There is a strangely arrogant tone to it which is married with a kind of modestly that causes them to believe that the people in power could also do an okay job too if it weren’t those pesky Tories/Tax evaders/establishment types/special interests. When you consider economics as a problem of knowledge, skills and decison making though, it’s obvious that the more spending power is decentralised the better will be our economic progress. None of that is reflected in the media discourse on this story. The media would have you believe that tax is an unqualified good, not the unjustifiable error that it is.

I had thought of heading over to Starbucks with members of the meetup to give those arrogant UK Uncut types a stern dressing down well composed leaflet about Austrian economics, and try to get some media traction. If I had gone ahead I would have been busily taping cardboard to placard poles on Sunday evening when I heard about Starbucks’ change of heart. The deafening silence and earnest lack of co-operation I got when I floated it on Facebook saved me a wasted weekend. Just as the UK media are years away from being able to properly discuss these ideas in a balanced way, the UK’s libertarian tendency is not ready to take to the barricades. I wonder if that because my colleagues have realised long before me how far the UK media are away from taking libertarian ideas seriously, or whether we must focus for a few more years on simply running up the flag and building up the strength of the community.

UPDATE: feedback from the pub is that it was a technology failure. I’m pleased, that’s considerably easier to fix.

  7 comments for “Starbucks giving up

  1. Paul Marks
    Dec 3, 2012 at 8:43 am

    Starbucks has been trapped by their own image making and marketing. You can not sell yourself as “Progressive” (the sort of place that Obama worshippers would hang out) and then defend PRIVATE PROPERTY RIGHTS.

    This is the trap that a lot of business enterprises (not just in food and drink – but in entertainment and a lot of other fields also) are in.

    They have played to the left – for years. And profited by doing so..

    But they find that the leftists are not just interested in ordering about, and robbing, “reactionary” types. The left are interested in ordering about, and robbing, EVERYONE – including their “friends”.

    A philosophical (a moral) foundation does matter.

    A company like Amazon shows it is possible to make money without crawling to the leftists. The Starbucks management (and the Hollywood executive and …..) could have had a different image and marketing approach – they made a CHOICE to play to the left.

    Now they will face the consequences.

    • Dec 3, 2012 at 9:09 am

      I have a spare copy of Atlas Shrugged, maybe I should send it to Howard Schultz with a copy of your comment :-)

  2. Dec 3, 2012 at 2:08 pm

    I think Paul is right about Starbucks and Google. They have marketed themselves as “Fair Trade We Do No Evil” nonsense — and it has clearly back fired.

    But also there is a bigger issue which is that people now seem to believe that society is a feature of the State. So if you don’t contribute to the State you are not contributing to society.

  3. George Mulberry
    Dec 3, 2012 at 8:48 pm
  4. Richard Carey
    Dec 3, 2012 at 10:23 pm

    I feel like I’ve missed something. Was there a demo? Did we win? Here’s an idea; print up a load of forms which have the address of the taxman, which can be used to send a voluntary donation and give them out, so that the bastards can practice what they preach.

    • Dec 4, 2012 at 9:03 am

      I’ll fill you in at the pub.

Comments are closed.