Democracy is a tool that administrations and legislatures use to distract and amuse the mass citizenry. The illusion of freedom generated by a right to choose political leaders has worked in keeping the barbarians from knocking down the gates over the past 246 years in America as demonstrated by political power passing peacefully from one administration to the next. Stability in the transition of political power helps the United States stand out among most other nations.
But when democracy starts seeping into market discussions, we can end up with market disruptions. Democracy means too many voices in the kitchen opining on how the cake batter should be mixed. The paper wealth created over the last fifty years combined with progressive left politics has the mass electorate believing that they should take lead in managing the economy, at least via their rhetoric. And they hope their rhetoric can influence elected officials and policy makers to craft policy that favors political spheres versus economic and financial spheres.
I say “political spheres” because democracy is a schizophrenic notion. The supposed “big tent” means a variety of demands that tug administrations and legislatures in different directions on social and political issues.
Whereas 250 years ago the English monarchy had the reins of the political economy concentrated in his hands, today “political” has been separated from “economic” and relative stability is found more in the economic and financial sphere. No matter the goods and services traded, profit is the prevailing, bottom-line standard.
In their pursuit of votes, the schizophrenic political class attacks the low hanging fruit of economic and financial profit, describing profit as the problem that only legislation and regulation can address. The factions within the schizophrenic political class then vie for the vote asserting that only their faction can best address the evils of profit.
Democracy is disruptive to trade in the above way. To counter the schizophrenia, the trading class has to execute political power. The shenanigans of democracy have to be quelled by a faction within the political class who acknowledge the dangers of overactive democracy.
The trading class should finance the political action committees (note, political action committees not democracy action committees) that can identify and finance candidates that understand the dilemma democracy introduces into markets.
Democracy is a marketing campaign and marketing campaigns change. Political power is permanent.
27 April 2022
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