Farewell to competition: The politics of Donald Trump
#269
My Dear Friend of Democracy,
Democracy and the market economy have a lot in common.
Above all, they work best when there is competition.
And there is competition when providers or parties have limited power.
Then, they cannot set excessive prices, offer poor quality, or build political castles in the air. The competitor is always standing by, trying to take over the customers or voters.
It is also the other way around: The more power is distributed among a few, the less effective democracy and the market economy are.
Two examples.
Large companies use political influence to keep start-ups out of the market (for instance, through extensive protocol requirements).
Governments influence elections so that the opposition cannot win (for example, because the media is in the hands of those in power).
The problem with competition: There is always the danger that it will be eliminated.
Because whoever is in power benefits from the disappearance of competition. And whoever is in power sometimes has the power to make competitors disappear. Then, they use their power to change the game's rules so that new competitors (companies or parties) have less chance of successfully participating.
That is why we need the separation of powers in politics, and that is why we need competition authorities in the economy. Both institutional rules have the same aim: to limit power and thus keep the market open to all participants.
Why this theoretical digression today?
I've read an article about how Donald Trump uses his political power to increase his wealth.
There is no question: most US presidencies have made their holders rich. Usually, however, most of the time after their presidency. Through lectures and books. Trump is different. The coming presidency is already paying into his account. Day by day. Anyone who wants to become a member of his golf resort Mar-a-Lago (and many want to) has to pay a one million dollar joining fee. And anyone who wants to be even closer to Trump, like Elon Musk, pays 2,000 Dollars per night to stay at the golf resort.
Trump has turned political power into a business model.
And business leaders turn to political power to gain advantages for their businesses (at the expense of others).
Ultimately, it will be at least the zero-sum game in which Donald Trump believes economics and politics work.
Probably, it will be even worse.
But that is only how bad economics and bad politics work.
✊ In a sound economic and political framework, the good (and sometimes the bad) is replaced by the better (sometimes the less harmful). Society then continues to develop. Let us hope that the USA can strive again soon.
See you in Democracy,
Johannes
📸 Èpinal, France / 31 December 2024