Tuesday, May 19, 2026

Republicans give up on free market policies while Democrats seek money from wall street donors

See Democrats Are Courting These Wall Street Financiers to Help Them Win in 2028: Potential presidential candidates are already looking to build a donor network ahead of formally entering the race next year by Brian Schwartz and John McCormick of The WSJ. Excerpts:

[Democrats] "have met with wealthy investors and financiers in recent months."

"Wall Street and wealth are viewed with great suspicion among many of the progressives likely to play a significant role in picking the party’s nominee, and taxing the rich and bashing capitalism have become a rallying cry for many of them. Wall Street has nonetheless long been a significant source of money for the party"

"The early meetings with donors are happening quietly, including over meals near Wall Street and in Midtown conference rooms. They are also playing out in Silicon Valley and other U.S. wealth centers."

[Centerview Partners co-founder Blair] "Effron, a longtime bridge between Wall Street and Democrats, has played a central fundraising role in multiple presidential elections.

Emanuel, who has had his own stints working for Wall Street, including becoming a senior adviser at Centerview after returning to the U.S. in 2025 from his Japan ambassadorship, has been among the potential presidential contenders already engaging with longtime business community acquaintances about a bid."

Then see How the Trump Administration Became an Activist Investor: The president’s reach for government stakes in private companies has business leaders scrambling by Maggie Severns, Gavin Bade, Josh Dawsey and Meridith McGraw of The WSJ. Excerpts:

"There is free-market capitalism and state capitalism. Now, there’s Trump capitalism.

In recent months, the president has extended his hand into American business in unorthodox and, to some corporate leaders, alarming ways—from progressive-style demands to cap credit-card rates to assertive deals grabbing government shares in private companies."

"Administration officials are stoking the president’s instinct to shift more authority over private-sector industries to Trump and his team. The Trump administration has announced direct investment stakes in at least 10 companies, including a 10% equity stake in Intel and a “golden share” of U.S. Steel, which grants the government power to influence company decisions.

“We’re seeing the government get more involved in different aspects of the economy, which is a pivot off the more traditional Republican approach of the last century,” said Kelly Ann Shaw, deputy assistant to the president for international economic affairs in Trump’s first term.

The Trump administration obtained significant shares of critical-minerals companies" 

"Trump’s approach extends well beyond national-security concerns"

"In December, Trump met with The Wall Street Journal and said, “When people need something, I think we should take stakes in companies. Now, some people would say that doesn’t sound very American. Actually, I think it is very American.”"

"Trump called for the interest-rate cap [on credit cards] to begin in late January, a deadline that came and went without action from the administration." 

"In January, Trump announced policies that marked a turnabout, including a ban on institutional investors such as Blackstone from buying homes."

"“This is a much different Republican Party and a much different leader than I think we’ve seen in the last 50 years,” said Suzanne Clark, president of the Chamber of Commerce, which represents many of the largest U.S. corporations and for decades has advocated for a smaller government role in the economy."

"To critics, the president has embraced a form of state capitalism that expands the authority of the executive branch, recalibrating America’s traditional balance of powers."

"[Jake] Sullivan, Biden’s former adviser, said he worried that the administration’s investment in companies might warp markets and reward cronies."

Related posts:

People gave up a chance to win money in order to avoid hearing from those with opposing political views (2017) 

People say the president can control gas prices if the president belongs to the other party (2017)

Are some blue jeans really Democratic and others Republican? (2019)

Why Are Americans So Distrustful of Each Other? (2021)

"In 2017, around 70% of Democrats said that Donald Trump voters couldn't be trusted, and around 70% of Republicans said the same of Hillary Clinton voters" 

More and more, executives at major corporations belong to the same politcal party and tend to leave their companies if they are in the minority party there (2022) 

Adam Smith Meets Jonathan Haidt (on political polarization and the animosity of hostile factions)  (2023)

Why Tribalism Took Over Our Politics: Social science gives an uncomfortable explanation: Our brains were made for conflict (2023) 

Democrats and Republicans say economy is improving, but mostly only when someone from their party is president (2024) 

Did Fracking in Pennsylvania Turn Democrats Into Republicans and Republicans Into Democrats? (2024)

Are fewer Democrats buying Teslas because of Elon Musk's political views? (2024)

Partisanship deeply colors how Americans think about trade policy, especially tariffs (2024) 

Would you give up some income in order to get a job at a firm whose workers share your political opinions? (2024)

Republicans Are Feeling Good Again, Driving Up Consumer Sentiment: Democrats’ sentiment slips, but overall index ticks higher (2024)

Causes and Extent of Increasing Partisan Segregation in the U.S. – Evidence from Migration Patterns of 212 Million Voters (2025)

Red vs. Blue Is Dividing Stock Portfolios Like Never Before: A political gap in optimism about markets is translating into trading decisions (2025)

Can testosterone shift political preferences? (2025)

What does conservatism mean? Fewer taxes & regulations or preserving traditional values and communities? A Republican county in Tennessee faces this question when farmers go against land developers (2025)

Poor whites used to vote for Democratic presidential candidates while rich whites voted Repulican. This has now reversed (2026)

Elites moved toward democrats more than nonelites moved away: Income, education, and occupational class in US presidential elections, 1980–2020 (2026)

Politics and Your Portfolio Shouldn’t Mix (2026) 

See also Americans start caring more about deficits and the national debt when the party they oppose runs them up by John V. Kane of New York University and Ian G. Anson of The University of Maryland. Excerpt:

"In the past two decades, US budget deficits have skyrocketed, and the national debt is now over $22 trillion. But do Americans care about the size of deficits and the national debt? In new research, John V. Kane and Ian G. Anson find that people tend to care more about the deficits and debts when they are increased by presidents from the party that they oppose. Both Republicans and Democrats, they write, become less concerned about governments running deficits when their President is in charge."

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