The earth shook on November 8th. The Elites are out. Business people and pragmatism are in. Whatever your political views, the election was an indeed a historical moment, the likes of which we have not seen in this country since Andrew Jackson toppled John Quincy Adams in the early 1800’s. The framework of the election was the forgotten: men and women stood shoulder-to-shoulder verses the leviathan establishment.
The revolution was against government establishment and other oversized institutions including business, media and global coalitions. The scale and sheer immensity of these institutions has rendered them too big to work. So the people voted for change, to reverse course. The pendulum will now swing from scale and centralization to deconsolidation and localization.
This change in direction will happen across the business, government and the regulatory sphere. What does this mean for the middle market economy? I think positive things are in store for the middle market on a number of fronts:
1. Increased lending – middle market companies are job growth engines. Look for increased focus on SBA and SBIC lending programs as the government looks to crank up economic growth.
2. Increased entrepreneurism – new business formation has been in the doldrums. Look for lower taxes and new incentives to get new businesses flowing.
3. Lower taxes – lower business taxes will unleash more investment and repatriation of overseas profits.
4. Scrapping of bad regulations – Healthcare & Financial Regulation will be revised. This will lead to business optimism and increase business confidence.
5. Increased focus on local manufacturing – the goal of the new administration is to rebuild the manufacturing sector or at least reclaim some of it from other parts of the world.
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