Election Consequences and Investing

As with any election as people and power shifts consequences occur and change the shape of the economy and the country as a whole. It might take years to fully realize the shift or just a matter of days after the formal change occurs. Tonight was a big shift in power in the Senate and it could still be bigger as a runoff is left and not all votes are counted. The electorate wanted change tonight and they will get it. As investors though we might like the change or hate the change we have to see what companies could win or lose from the change. Will corporate taxes be lowered, its a strong possibility and so that will mean higher earnings for all companies boosting stock prices and values. What other things will get the go ahead from the government or receive government subsidies. I'm not sure yet and it is hard to tell until the law comes into effect but we can make guesses of what will occur.

I'm excited to see the new changes will be and it is sure to open up new investment potential.

The President and His Czars

A break form my normal coverage of business we go into the world of politics. Appropriately before the election. President Obama has appointed several people throughout his six years to be in charge of certain aspects of policy and carryout his goals. The appointees are not elected or confirmed through Congress but just simple administrative appointments. I personally think the world choice is terrible. We should not have any czars in America appointed or elected. Czars conjure up the image of an evil tyrant in Russia whipping the peasants into shape and forcing an iron will upon the people. Of course this is far from the image I want to see rom my government. Why can't they be named head administrator or chief policy director. These sound nicer.

Not only am I not a fan of the name that they have chosen, I also do not like the idea that an appointment without any oversight can make policy that has far reaching effects for the country. We live in a republic I hope and that republic needs representation and a balance of oversight and powers. The President should not have the authority to appoint someone to have this power because no one person should have the power to make policy and law. Otherwise we lose the Republic and revert back to a dictatorship.

As SNL pointed out in last week's episode that the appointment of the new Ebola Czar had no medical experience. Why are we allowing people to be in charge of policy that have no background in that field. President Obama's other czars have not had a good understanding of the fields that were their charges. We do not always get the best choices in people to do anything but with a system of checks and balances at least it is not one person's fault but a group. Groups make better decisions than an individual. I'm still all about the individual but groups collect wisdom and knowledge together to make a better decision.

Let's get rid of the czars and start by renaming them to something far away from tyrannical meanings.