It is abundantly clear that society needs rules (regulations) in order to function. However, the rules need to be rational and serve the greater good rather than a means to achieve objectives that are not acceptable to the majority.
Over the last year, the current administration, through executive orders, has been actively rolling back a variety of regulations put in place by the previous administration. Many stock market observers have suggested that this reduction in some regulations has been a material factor in the exceptional, post-election performance of the major market indexes.
In light of the foregoing, it might be interesting to investors to revisit some comments by former Senator and 1972 Presidential candidate, George McGovern, as they related to his experience in the private sector, after he’d left politics.
Commenting on his experience in the private sector, the Senator wrote; “I also wish that during the years I was in public office, I had had this firsthand experience about the difficulties business people face every day. That knowledge would have made me a better U. S. senator and a more understanding presidential contender.”
He went on to talk about all sorts of crazy regulations, that may have appeared to make sense to the politicians passing them, but were actually serving to create a huge headache for businesses, often because whoever is writing the laws has no idea what they’re talking about.
Investors should note that the current occupant of the White House has had considerable experience in navigating regulatory and permitting requirements.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA