Violence at the Capitol no problem for business
The Dow Jones Industrial Average added more than 400 points while thousands of insurgents attempted to reverse the will of the American people and empower their cult leader.
The investing class saw little real threat from the attempted coup d'état by President Donald Trump's most fervent supporters. The violence at the Capitol only merited a 200-point drop from the session's highs, but not enough to end down for the day.
Traders were not fiddling while Rome burned; they were unflinching realists. The assault on America's institutions was nothing more than the climactic final act of Trump's reality-show presidency, and everyone knows the show was canceled. The violence only made a reboot less likely.
The business community is anxious to see the end of what Trump promised would be a businessman's presidency.
He didn't drain the swamp; he didn't fix health care; he didn't instill fiscal discipline; he didn't improve the trade deficit. But he did introduce unprecedented volatility.
While the markets sloughed off the harrowing images from Washington, business leaders agreed with most Americans that political violence is getting out of control, and Trump is responsible. The U.S. is a consumer-based economy, and business needs people shopping, not marching.
“The chaos unfolding in the nation's capital is the result of unlawful efforts to overturn the legitimate results of a democratic election,” the Business Roundtable said in a statement.
The CEOS of 200 major American corporations called “on the president and all relevant officials to put an end to the chaos and to facilitate the peaceful transition of power.”
Citi CEO Michael Corbat said he was “disgusted by the actions
of those who have stormed the U.S. Capitol.”
By the way, no word from any of the major U.S. oil and gas companies that supported Trump.
The National Association of Manufacturers unflinchingly condemned the sedition, suggesting Vice President Mike Pence remove Trump from power using the 25th Amendment.
“The outgoing president incited violence in an attempt to retain power, and any elected leader defending him is violating their oath to the Constitution and rejecting democracy in favor of anarchy,” said Jay Timmons, the association’s CEO. “Anyone indulging conspiracy theories to raise campaign dollars is complicit.”
Timmons was taking direct aim at Sen. Ted Cruz, who has sent out millions of fundraising emails promoting his efforts to stall Congress’ certification of Presidentelect Joe Biden’s victory.
Cruz is pandering to Trump’s supporters for a 2024 presidential run.
But Timmons has some reflection to do, too.
In an apparent attempt to win the president’s favor, Timmons and his association made Ivanka Trump the inaugural recipient of the association’s Alexander Hamilton Award for Extraordinary Support of Manufacturing in America last year.
“Like no one in government has ever done, she has provided singular leadership and shown an unwavering commitment to modern manufacturing in America,” Timmons said in the announcement.
“Singular leadership” like “no one in government has ever done?” Seriously, Jay? Did you really believe that?
Lobbyists from the Business Roundtable donated cash to the Republican political action committee Winred and earmarked it for the Trump Make America Great Again Committee.
Other Roundtable lobbyists giving to the Biden
campaign does not balance things out.
Throughout the country, CEOS have been talking about the importance of corporate responsibility and ESG, an acronym for environmental, social and governance.
The Roundtable’s members have promised to consider their customers and employees are just as important as shareholders when making decisions.
The statement came after several years of consumers and workers demanding that executives stand up for their values. Americans want to do business with companies that protect the environment, treat people the same, and give back to the community.
This is further proof that companies and politicians do not lead; they follow their customers and voters.
Twitter and Facebook finally shut down Trump’s social media accounts not because of Trump’s fomenting of violence, but because most of their customers are disgusted by
him.
Some Americans have spent the past four years flirting with Trump’s fascism, which is typical during periods of social and economic upheaval. People gravitate toward strongman figures promising solutions when times get scary. But most Americans are pulling back from Trumpism after the attack on the Capitol and his cowardly response to it.
Business leaders and politicians recognize that appealing to Trump supporters is a losing play as his influence shrinks and his faculties weaken. Executives are not showing courage. They are following their customers.
Meanwhile, the rise in stock prices does not mean stock traders are indifferent to seditious violence. No, they are showing their faith in the American people to move past the turmoil.