I’ve been asked by a number of people recently why large corporations/Wall Street would support Hillary Clinton over Donald Trump. Trump so obviously has what is a pro-business economic plan designed to generate economic growth through lower taxes, reduced regulation, energy independence and better trade deals. Clinton, on the other hand, wants to increase taxes and regulation; continue with poorly negotiated trade deals; and limit domestic energy production.
So, why would big business support Clinton? Well, the fact is that not all businesses are the same or have the same economic interests. Small and mid-sized businesses often have very different concerns than those of large global corporations. Here are three policy positions that make Clinton appealing to big corporate interests.
First, and most obvious, there are the large globalist companies that know Clinton will allow them to continue taking advantage of cheap labor, lax environmental regulation and the other benefits of unbalanced, poorly negotiated trade deals. Trump won’t. So, they support Clinton.
Second, there are large corporations that have significant government contracts. About 35% of GDP is now government spending and that’s a significant amount of business. Large businesses with big government contracts understandably want increased government spending, not less. There is also a huge pay-to-play element. They know they can curry favor with Clinton through support and contributions. Trump has clearly stated that he intends to reduce government spending, negotiate tougher deals for government business and you cannot buy him with support or cash. So, they support Clinton.
Third, there are those businesses that are highly regulated. These businesses know that if Clinton wins, the time to buy favorable treatment with cash and support is now. Even if unfriendly legislation and regulation increases, favorable treatment is essential. In fact, it may be possible to get legislation or regulations that protect your business from competition (like the large banks did with Dodd-Frank). Trump is going to reduce regulation in any event so even if he wins, highly regulated businesses will benefit whether or not they supported him. And, in any event, they can’t buy favorable treatment from Trump with cash and support. So, they support Clinton.
On the other hand, Trump’s entire economic plan is populist and intended to generate growth that would benefit American workers and small to mid-sized businesses thereby reducing income inequality, increasing wages and opening paths to the middle class. Whether its tax, trade, regulatory or energy policy, Trump’s plan is clearly superior unless you are one of the large globalist companies that ship jobs overseas, profit from poorly negotiated government contracts or want to be sure you can influence legislative and regulatory policies coming out of the Clinton Administration.
If you’re a small or mid-sized business, a working or middle class American and you want someone in your corner, Donald Trump is your candidate.