How to Fix American Politics

America is a messed-up place these days. I know, not new news. But there really is something seriously wrong with the political landscape in America. Our democracy has been damaged in some fundamental way, perhaps even existentially so. 

But you all are not reading Profit+ to hear another complaint or diatribe. That’s not what this is all about. No, we’re here to understand the truth and figure out what to do it about. 

The first step, then, is to try understand just why America is such a political mess. 

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For many, it comes down to a simple political calculus. “If only my particular party were in power then everything would be ok.”

For others, our problems are a result of broken democratic processes. For people like Nick Troiano of Unite America, who are busy pursuing election reform, the feeling is more “if only we can just get different people elected….”

For others still, it’s more of an issues thing, often a single one. “If only we could restore the Roe v. Wade framework for abortion…” or “If only we could secure the border…” or “If only we could stop China from stealing our intellectual property…”. You get the idea.

While there’s something to all these notions, I think I figured out something the other day though that gets more at the root of the problem here. You see, as I’ve been paying closer and closer attention to political dialogue and debate, I noticed something interesting. 

Let me try to explain. I know this is a gross oversimplification but consider this:

Our system is roughly divided into three spheres of action and influence. We have the government itself, private enterprise (i.e. business), and then individual citizens. In reality, there’s no real separation among all these 3 spheres of action. You simply cannot act in your capacity as a private citizen and not impact the other areas. Even when you think are just doing business, you are doing more than that. You’re paying taxes, complying with laws and regulations…etc. So, while the 3 spheres of action appear separate and distinct, in truth, they interact, interrelate, and ultimately cohere into what we call our society. 

The big problem right now—the meta-problem if you will—is that, for a whole bunch of crazy reasons, we have sorted politically upon a series of false beliefs, so much so that we have all come to believe that the enemy is among us. 

Many—mostly on the left—have become so disillusioned with business that they have given up completely on capitalism. “It’s the greedy capitalists that are the enemy!”  

At the same time, many others—mostly on the right have become so frustrated by government and bureaucratic ineptitude that they are ready to write them off completely as well. “No, no, no, it’s the government that is the enemy!”  

There are still yet others who believe both sides are crazy and have just thrown their hands and resigned to live as private of an existence as possible. “It’s the system itself that is the problem!” 

The truth, of course, is that we need all 3 spheres of action working effectively and efficiently together to create a thriving society. No matter how compassionate and generous we may want to be, we know enough about history to know this: if we stifle the incentive structure of business and try to rely exclusively on the government to meet all our needs, we will fail. Similarly, if we just let businesses and individuals run amok with no government intervention, we will fail just as spectacularly. What about those with the wild dream who think we can just ignore everything and live out our private lives? All you have to do is study some history to see just how foolish of an idea that is. Inevitably, history will come knocking and when that happens, there really is no place to hide.

So, to come together politically, to mend the false fractures of our dialogue and debate, we have to start with the foundational understanding that we do in fact need each other. If we cannot do this, then truly there is no hope. 

We also have to accept that the answer to our problems is not to completely cast aside or destroy others and their points of view but rather to use the best of each sphere to produce a kind of harmony. We need business and the incentive structure of capitalism to drive our economy forward. We need government to make sure the system is fair and ensure that it properly balances the needs of the present with those of the future. And we need individuals ready, willing, and able to live full, responsible, and meaningful lives.

As always, the truth is in the middle.

Interestingly, at this exact moment, when it feels like things couldn’t be worse, when it feels like there’s just no chance we can come together, I see a way appearing. It cannot be a coincidence that something like 50% of our population is self-identifying as “independent” after all!

What, then, should we do? The way forward—what I’m calling practical progressivism—is to create a vision and platform that elegantly weaves together the incentive structures of our society so that we get the very best of individuals, business, and government. 

It’s about being compassionate to the humanitarian needs of others and, yes, being willing to invest significant financial resources to help lift up those in need.

But instead of excoriating business and “evil” capitalists, we must recruit them and their, let’s face it, completely necessary and considerable financial resources and capabilities, to aid in the cause. By the way, this has already started happening—just look at the rise of social impact investing, for instance. 

We have to remain committed to economic freedom and capitalism but keep our hearts and pocketbooks open to address those problems that arise when the magic hands of the market aren’t quite working. This happens a lot, by the way. 

Believe it or not, it is, indeed possible, to create a regulatory framework that actually makes sense—i.e. one that takes into account social considerations and externalities without being unduly burdensome. To do this, we have to wrest control of our legislative processes from the hands of the powerful interest groups who are firmly in control today. To be sure, they won’t go quietly into the night and there’s sure to be a lot of kicking and screaming but in our system, nothing trumps the will of the people. 

At the same time, we have to demand more from our government. Contrary to popular belief, we don’t have to accept or tolerate the status quo when it comes to the functions of government. Anything that’s broken or not working efficiently, should be fixed, and done so immediately. The only thing that is standing in the way of us and a reasonably functioning DMV or building and safety department or VA or pick your poison is adequate political will, courage, and grit. 

We also have to ask more of individuals as well. Americans have to understand that it’s really true that “freedom isn’t free” and the obligations of citizenship extend far beyond the ballot box. I get it. Who has the time these days? But as hard as democracy may be, freedom is worth the price. In truth, we should all be counting our lucky stars that we aren’t being asked to make a more ultimate sacrifice than our time, care, and attention. I suspect we will, before too long, if we don’t put our house in order. 

Thank you all for reading to the end! I just wanted to let you know that we will not be releasing a podcast next Tuesday on account of the holiday here in America. So, the next time you will hear from me will be a week from today.

Hope you all have a great week and Happy Memorial Day to all my American readers.

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