Wall St. vs the Democratic party
Perhaps I’m naive but I do not understand why all the business commentators disabuse the Democratic candidates. My political memory stretches back to President Eisenhower. Granted, I was a wee small child during Eisenhower’s administration, but it gives you an idea of how long I’ve been following American politics.
When John Kennedy debated Richard Nixon in the first nationally broadcast debate, I was eleven years old. My father, a life long Republican, and I bent close to the radio to hear the debate. We were living in a small beach house on the coast of New Hampshire, awaiting my father’s new orders assigning him to an Air Force base in California where my parents wanted to retire. Our beach cottage rental didn’t have a TV so the radio was our only link to the news. On that historic night, I listened and turned to my father saying, ” Kennedy is going to win.” My father grinned at me and said, “You think so?” “Yes”, I replied. He didn’t ask me why I thought so. I guess he thought I was just a kid.
Since those elysian days of my youth, I’ve watched the economy under both Republican and Democratic administrations. As a business person who has staked her fortunes on the resiliency of our capitalistic economy, I’ve come to accept that business fortunes have been been better served for all of us middle class wage earners and Wall Street as well under Democratic administrations. Under Kennedy taxes decreased, government revenues increased and businesses expanded. Under Johnson, again businesses did well–no major recessions, no huge layoffs of workers, companies not going belly up. Under Clinton, the federal deficit decreased dramatically, staving off the fiscal disaster many Wall Street insiders feared, and private industry boomed.
So, why is Wall Street apparently so afraid of another Democratic Administration? Why would Wall Street think that a Democratic Administration would view business with antipathy? Certainly, Democrats in general want a more level playing field where small businesses can compete with multi-national conglomerates. Certainly, Democrats want workers to be protected from unsafe practices. Certainly, Democrats want middle Americans to be valued and treated fairly and honorably. But none of these ideals takes away from business. Instead it enhances business.
Every study of the business environment proves that when workers are treated honorably and fairly and with respect, productivity increases. When trade deals are negotiated with an eye towards fairness and respect for all participating parties, including any correlating groups, everyone gains.
Yes, we’re now dealing with a global economy…and global competition. That competition puts enormous strains on companies, particularly when Wall Street demands ever increasing profits each and every quarter, regardless of the needs of the company for R & D and retrofitting. But those needs and pressures don’t necessarily mean that a Democratic Administration would prove antagonist to business.
On the contrary, a Democratic Administration, as history shows, might just well spur our capitalistic economy to even greater heights as occurred under previous Democratic Administrations. In my humble opinion, if Wall Street and businesses are concerned about the future, they should support the possibilities, ripe with potential, that a Democratic Admin. can bring to this country.
If this country…and business…lacks one major incentive, which it has not had during the last seven and a half years of Republican domination, it is supported entrepreneurial innovation. Instead Republicans have supported old technologies, old businesses, old ideas. Since WWI, Republicans whole heartedly have supported the status quo as opposed to new ideas, new innovations. If this nation is to survive and compete in a global economy, we need new ideas, new innovations, new technologies, new means of dealing with worker needs for quality wages and health care, new ways to deal with the fiscal restraints of competing globally. We need to stop looking back at the 19th Century and let our imaginations take flight into the 21st Century.
So, why is Wall Street so antipathic towards a potential new Democratic Administration? I simply do not know.