Sunday, June 29, 2008

I ran across this a while back but forgot to blog about it. Consider that mistake now corrected. TJIC quotes this article, and then proceeds to add his own commentary:

One sentence re-ordered slightly:

… On December 8, the Florida Supreme Court ordered a recount in certain counties, raising the chance that Gore would win. On December 13 … Gore conceded to Bush…

If politics means profit, a “Republican” company should have taken a knock on December 8, but surged on December 13…

A recent study … found exactly that: … Republican companies [ with board members who had served as Republican senators or congressmen or members of a Republican administration, and with no Democratically connected board members .. ] beat the market by 3 per cent over the week after Bush’s victory was assured; Democratic companies took almost a 3 per cent knock…

The article goes on to point out that the same effect happened on companies with Democratic ties when the flip-flop went the other way.

I am going to restate TJIC's basic point (the rest of his post), in my own pithy way. This needs to be noticed by all of you who want to "clean up" the political process and/or "get the money out of politics." Such an endeavor is largely going to be futile so long as the occupant of a single political office controls a share price swing of something like $450 billion. To get the money out of politics, one needs to make it a bad investment for the companies in question. That won't happen unless we drastically reduce the scope of the power of our government to affect the distribution of wealth.

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