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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