Small businesses are predominantly made up of right leaning true conservatives whose beliefs are based in fiscal responsibility. They plan for tomorrow, work hard today, and believe freedom is the way to success.
Corporate America believed this way until the early 1990s or so, why the change?
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Let us understand and keep in mind two things to begin with….
#1. The job of a business is to make money and provide value to their stockholders.
#2. Let us examine how big business hires. The vast majority of CEOs of major corporation are managers, they are not risk takers. They are typically risk adverse. They are not innovators, they are not market makers.
We hold in high regard the Steve Jobs and Elon Musk types because they are the trendsetters. These type of people create markets, innovate and deliver products that change our lives. They see what we want or need before we even know we want or need.
So why the move left by big businesses?
Follow this for a minute…
Big business has become risk adverse, so they hire people to populate their ranks that have graduated cookie cutter business schools and are taught and schooled in managing a business.
They are taught how to provide value to the stockholders in the quickest and safest manner. This means conduct mergers and acquisitions, mitigate losses and maintain established markets and growing only in emerging markets. They have been taught that emerging markets are the easiest path to growth while discounting market creation as a path to growth.
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Remember even as children we learn that humans, like water, will always follow the path of least resistance. Moreover, innovation takes time, talent, resources and risk. Innovation is the opposite of how these business managers have been taught and trained.
If you are a large shoe manufacturer, for example, and you have maximized your market share in the US, how do you keep your job as the CEO? You must keep adding value to the stock holder. That means following the path of least resistance, grow profit by lowering cost of goods and increasing market share abroad.
So this is where politics comes in.
You must align yourself with the political party that will turn a blind eye to human rights violations like using slave labor and child labor; the party that will not address inhumane treatment of their own citizens.
The Democrat party has always been the party of cheap labor from slavery to illegal immigrants. Democrats talk a lot about human rights violations but they refuse to sanction bad actors like China. Big business and the democrat party are beholden to China.
The tentacles of China are in Hollywood. Look at the underlying themes in movies. In the movie Gravity starring Sandra Bullock, the US space station was destroyed, the Russian station was destroyed, and the Chinese space station saved the day.
In the movie Martian, the primary character played by Matt Damon had to be saved by a Chinese rocket because the American rocket launch failed. In the remake of Red Dawn the Chinese required the “invading military” be changed from the Chinese to the North Koreans.
Hollywood is basically owned by the Chinese. Look no further than the NBA, they apparently owe the Chinese their soul. No one is allowed to speak ill of the Chinese in the NBA. Guess who the NBA commissioner Adam Silver just donated the maximum donation to…yes you guessed it, the Democrats.
Nike is another major corporation beholden to China not only through production but also with its ties to the NBA. Yes, I could list hundreds if not thousands of companies that are shackled to Communist China, but for the sake of brevity I will stop here.
Democrats know that their reelection coffers will run dry if they do not cater to the businesses that want cheap labor and the emerging Chinese market. They will support the Globalist vision even at the cost of this Republic.
Here’s the second part of the equation.
Democrats are notorious for regulations and levying taxes, both of which create a much higher economic cost of entry into a vertical market thus ensuring less competition or at least competition among peers, and big business loves that.
This substantially reduces the possibility of a new innovative start up coming out of nowhere in the United States with a market changing product. This allows the company, in military terms, to secure your flanks and rear areas while only being concerned with what is coming toward you from the front. Large corporations are not nimble enough to respond to changing markets and the left protects them through taxes and regulation.
So now the argument over technology companies is heard. We are innovating in technology. Yes, but those businesses are also filled with left leaning employees and C-suite individuals. Why? Because the technology industry sees its market as Global, as does the majority of big business. The party of globalism is the Democrat party.
Democrats are offering nothing more than a form of protectionism for large established businesses. This also protects the unions, for the time being. Combine the unions with big business and we now understand where a large portion of the Democrat’s money is coming from.
This lack of pressure on established businesses through the pressure of competition and innovation will prevent the natural evolution of business modeling and will stifle Innovation. This will continue to create a business environment that creates what the Democrats say they are against, a society and a business community consisting of the haves and have nots.
Our framers designed, through the Constitution, a government that was not supposed to have its finger on the scale. Democrats have managed to create a series of laws, or prevented laws from being passed, that puts government squarely in the middle of the scale and thus picks winners and losers. Big business is taking advantage of that system to protect themselves.
In years past, businesses saw themselves as an American company exporting to the world. Now, American businesses sees themselves as a global business, because they are more concerned with Globalism and global acceptance than with the concerns of this Republic.
The geopolitical and economic answer, the macro answer, has been and always will be to reduce regulations, lower taxes, remove government interference in markets and allow for capitalism and the individual to determine what is best.
Businesses being replaced with newer more innovative corporations or being forced to innovate and create markets will create a healthy economy. A truly free individual doing what is best for themselves makes this Republic truly strong and will takes us roaring into the future for generation to come.
The answer for us as consumers, the micro answer, is for each and everyone of us to spend our money in small businesses and with those big businesses that reflect our beliefs.