The road between enterprise and politics has disappeared
“Stop writing about politics. I signed up for a business newsletter.” I get this message, sometimes a lot of you, when the gaze of this room wanders towards Washington DC
Why it matters: Years ago it could have been a valid criticism. Today, however, the line between business and politics has all but disappeared.
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First of all: The reconciliation debate is really about restructuring the entire American economy and financing these changes. It could have a massive external impact on how investments perform, what investments are available, and how investors are paid.
Antitrust law: The Biden government paints with a very broad brush, arguing that corporate consolidation is driving consumer prices up and depressing wages.
Within Big Tech, which has received the most media attention in the antitrust area, the FTC is now taking a closer look at small acquisitions; a development that could be a headache for the seller.
And none of this affects trade policy with countries like China, which can turn into antitrust issues for US companies looking to conduct cross-border M&A.
F-street: The new SEC commissioner Gary Gensler wants to tighten the supervision of everything from crypto to SPACs to private investment funds.
Surface scratching: Add everything from pandemic rules to labor availability (including immigration). And only at the federal level.
The bottom line: This is not about supporting or rejecting certain policies or politicians. It’s just a matter of paying close attention because the alternative is to bypass the due diligence.
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