A country’s stability and growth on the global scale is highly dependent on its political climate. If the businesses and industries in a country thrive, the country will be progressive and economically stable. Political divisiveness or political polarisation is found in every country whether it is operating on a democratic or totalitarian system. In the United States of America, there is a political divide between the Republicans (Conservatives) and the Democrats (Liberals). This divide has had an impact on the country’s businesses since many decades. This blog post explains the various ways through which the businesses in the US are being adversely affected by the political divisiveness between the two major political groups.
When political ideologies are different, it is quite obvious that any time a political party with a different ideology comes into power there will be major changes in how the country is governed.
The political divide in the US is directly affecting the economic growth of the country. The businesses in the country rely upon the stock market stability that in turn relies upon the political stability. If the stock market is continuously fluctuating, the businesses will be unsure of when and where to invest their capital. This is especially true during the election period. The period few months before and after the elections is the most confusing time for the businesses operating in the country. The businesses and in turn the economic growth suffers the most during this uncertain political time.
Businesses are highly affected by the policies that are put into place by different political parties. The trade policy of the Democrats is different from that of the Republicans and as a result the shift in power makes the businesses revise their policies too. The inability of the country’s political parties to overcome this political divide prevents the exponential growth of the businesses. With every change of government, the trade policy is challenged and in certain cases the policy of the individual businesses need to be started right from the scratch.