In the United States, the political system is a very marginal affair. There are two parties, so-called, but they're really factions of the same party, the Business Party. Both represent some range of business interests. In fact, they can change their positions 180 degrees, and nobody even notices. In the 1984 election, for example, there was actually an issue, which often there isn't. The issue was Keynesian growth versus fiscal conservatism. The Republicans were the party of Keynesian growth: big spending, deficits, and so on. The Democrats were the party of fiscal conservatism: watch the money supply, worry about the deficits, et cetera. Now, I didn't see a single comment pointing out that the two parties had completely reversed their traditional positions. Traditionally, the Democrats are the party of Keynesian growth, and the Republicans the party of fiscal conservatism. So doesn't it strike you that something must have happened? Well, actually, it makes sense. Both parties are essentially the same party. The only question is how coalitions of investors have shifted around on tactical issues now and then. As they do, the parties shift to opposite positions, within a narrow spectrum.

Politics·Business·Parties·System