With Donald Trump elected as US President, it’s clearly time for us 78 year olds to make a come-back. In terms of candidates both had their weaknesses but the beauty of the US constitution is that there are several checks on the power of the President. The House of Representatives and the Senate have some control and there is also the US Supreme Court who can veto legislation. That is unlike in the UK where the Prime Minister can act like a dictator. The US system is better than the UK’s for that reason but it also helps to have a written constitution.
In England laws can be made by lawyers and a recent example is the decision by the Court of Appeal that it was unlawful for car dealers to receive commission on car finance deals. Why should car buyers need to know about commissions paid? If they are happy with the finance deal why should it be allowed to be challenged retrospectively? Caveat Emptor is the relevant phrase that should apply (the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made).
The election of Trump has had a definite positive effect on stock markets. Even my share portfolio is up about 1% this morning. Big tech stocks have particularly risen, presumably because folks perceive that might mean less regulatory interference or perhaps that the prospect of Leon Musk taking a role in managing the US economy is viewed positively (he wants to shrink the bureaucracy in the same way he cut staff at Twitter (“X)).
Roger Lawson (Twitter: https://twitter.com/RogerWLawson )
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