A lot of people will try to make some meaning out of the election of Trump to the White House. I have seen a lot of melt down tweets and Facebook posts about a lot of stuff. I think they are wrong, but everyone is entitled to their own opinion.
Democrats ran against the worst candidate the Republicans ever nominated, and lost. Their candidate was horrible. She was out of touch, and out of step with America, not to mention corrupt.
The Democratic Party’s nomination process was anti-competitive. It was over before it started. America was built on the idea of individual liberty, property rights, free enterprise and competition. Especially competition. Without competition, you get mediocrity.
Michael Bloomberg or Joe Biden win going away-but they never had a chance to run and they knew it. Wikileaks showed Bernie Sanders wasn’t a serious candidate but a pacing horse.
Republicans had a competitive nomination process. How much money was spent trying to defeat Trump? The GOP establishment needs to examine itself. What do they stand for if they aren’t behind the American people?
I worked on the trading floor. It was the most competitive place on earth. I competed head to head, tooth and nail with people standing inches from me in a zero sum game. Yet, somehow most of us remain friends to this day. We competed. It was healthy. Winners won and losers lost with no loopholes or carve outs or special deals.
One of the things I totally love about startups is how competitive it is. Win or die. Show merit, or go away. Build value for your customer, or end up in the dustbin of history. Competition creates great innovation which makes the world a better place for all of us. But, public policy has ended a lot of that creative destruction that is so vital to a thriving America.
American politics is riddled with loopholes, carve outs and special deals. Both parties are guilty of it. Gerrymandering takes competition out of politics and we get top down leadership that has lead to mediocrity. We get a parade of mediocre candidates with shitty ideas. The American tax code is filled with loopholes, carve outs and special deals. Public policy is filled with loopholes, carve outs and special deals. It shouldn’t be a surprise that government isn’t working for us.
Both parties have a lot of soul searching they need to do. Clearly, Democrats have lost touch. They are the party of public unions, big massive government, and special interests. 35% of them voted for a socialist and America is not a socialist country. Government is a cudgel that herds people and keeps them in line. The revolving door of government from bureaucratic agency to corporate America and back never stops revolving. Republicans also run that same path. Republicans have lost touch in a different way. They lost touch with small businesspeople, with startups, with the working people. They didn’t have a backbone and fight for what they said they believed in.
The American media is in the tank for the Democrats. They have been exposed. Their biases laid bare to see. The media is supposed to be a fourth estate-a watchdog. Instead, they were a biased attack dog that covered up the real scandals that were going on. Let’s hope they have a wake up call and return to being a fourth estate. Thank God for the transparency of the internet because if this was 1990, we wouldn’t have known anything about the politicization of the Department of Justice, the politicization of the IRS, or the politicization of almost the entire American bureaucracy.
Let’s hope this election was a wake up call for both parties. Let’s hope it was a wake up call to America.
Short term, the stock market will probably be choppy. Long term, if corporate taxes go to 10% and they deregulate the economy, it’s a buy. Simply repealing and replacing Obamacare will be a breath of fresh air for business. Repealing Dodd-Frank, repealing Sarbanes-Oxley will help companies raise capital and Americans invest in them.
There will be competition between the states and that’s a good thing. States that position themselves correctly will be winners. States that want to win should cut their corporate income tax as close to 0% as they can, make sure workman’s comp rules are not overbearing, and cut personal income taxes. When companies choose to build a new plant, states that do that will be high on the list. My own state of Illinois is positioned to be a big loser. Wisconsin, Michigan, and Indiana are positioning themselves to win. States like Texas, South Carolina, Florida, Mississippi, Tennessee, and Georgia are already positioned to win.
America needs to relearn the lessons of its founding. Competition, individual liberty over the collective, property rights, and free enterprise move society forward faster and more evenly than bureaucratic government.