Excerpt from CNN Business:
Democracy is under attack. And Wall Street is sounding the alarm
Analysis by Matt Egan – Jan. 05, 2021
Business leaders, investors and economists are sounding the alarm about the state of democracy in the aftermath of the 2020 presidential election.
The fear is that President Donald Trump’s efforts to sow doubt about the political system will harm the fragile recovery by causing social unrest, amplifying political division and paralyzing Washington when it needs to focus on rebuilding the economy from the worst pandemic in a century.
Longer term, the attacks on democracy could backfire by eroding confidence in the rule of law and cherished institutions that have made the United States the world’s strongest economy.
“I’m very worried,” said David Kotok, chief investment officer of Cumberland Advisors. “If there’s no trusted and stable democracy, the whole business-economic-market enterprise falls apart.”
In other words, corruption is bad for business.
Corporate America and Wall Street have been on high-alert for evidence of a breakdown in the nation’s respect for the rule of law. That’s because academic research shows that countries that have a track record for strong adherence to the rule of law tend to prosper more. It’s a crucial difference between emerging markets and developed ones. And it makes sense: Investors are reluctant to plow money into countries ruled by corruption.
“When you risk the rule of law, you jeopardize the ability of society to flourish,” said Kotok, the Cumberland Advisors executive. “That is what is at stake right now in the bizarre unfolding of this election.”
Read the full story at KCTV5’s site: https://www.kctv5.com/democracy-is-under-attack-and-wall-street-is-sounding-the-alarm/article_fc205573-7813-5489-8797-f2bf0b25e0b7.html
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