US president’s policies question role of government and corporate growth
13 February 2025 - 15:15
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The following betrays an important — and I believe flawed, or at least incomplete — worldview: Trump "... is not fully in thrall to corporate interests”.
Trump must be very disconcerting for those whose worldview is built on the assumption that the governments of leading global powers only really exist to enable corporate growth.
Trump is challenging exactly this assumption. The US grew at its greatest rates (as did real wages) when all businesses, especially small businesses — and the middle and working classes that ran and worked in them — also grew (1880-1960).
While US corporate growth since 1960 looks spectacular on overall GDP charts, it has been restricted to a handful of companies. The bulk of Americans have got poorer if you look at real wages versus inflation.
Trump may well be wrong, but I think the jury is still out on how the markets will ultimately react to the trifle of slowed corporate growth against the behemoth of a nationwide resurgence in middle- and working-class income growth and spend.
This will be an interesting space to watch.
Stuart Meyer Via BusinessLIVE
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Trump challenges accepted worldview
US president’s policies question role of government and corporate growth
Stuart Theobald’s most recent column refers (“Not a bad time to be risk averse”, February 12).
The following betrays an important — and I believe flawed, or at least incomplete — worldview: Trump "... is not fully in thrall to corporate interests”.
Trump must be very disconcerting for those whose worldview is built on the assumption that the governments of leading global powers only really exist to enable corporate growth.
Trump is challenging exactly this assumption. The US grew at its greatest rates (as did real wages) when all businesses, especially small businesses — and the middle and working classes that ran and worked in them — also grew (1880-1960).
While US corporate growth since 1960 looks spectacular on overall GDP charts, it has been restricted to a handful of companies. The bulk of Americans have got poorer if you look at real wages versus inflation.
Trump may well be wrong, but I think the jury is still out on how the markets will ultimately react to the trifle of slowed corporate growth against the behemoth of a nationwide resurgence in middle- and working-class income growth and spend.
This will be an interesting space to watch.
Stuart Meyer
Via BusinessLIVE
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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