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Red or Blue

There's been much in the media of late regarding the shift in politics from blue to red. The electorate has sent the strongest (reddest?) message in years, and everyone is trying to understand what it might mean. This morning I read this article:

http://www.nytimes.com/2015/01/04/opinion/sunday/is-life-better-in-americas-red-states.html?partner=rss&emc=rss

It's a fascinating (if liberal-slanted) view on what it means for the future of our country. This month's Governing magazine has several articles describing the extent of the changes, from state and gubernatorial shifts to the altering of the make up of the Congress.

The question I have is why does it matter? Traditionally liberal states like California, New York, etc. have continued to prosper since the downturn, and traditionally conservative states like Utah, Texas, and Georgia, have done well also. So how much does politics really matter? Can a government legislate itself into prosperity - by either loose regulations or tight governance? It seems that there may be other factors at play.

In my mind, the regulations imposed by a particular government are rather like the officials in a sporting event. They're there to make sure the play is done efficiently, correctly, and fairly. They make botched calls, to be sure, and sometimes (rarely!) that can have a dramatic impact on the outcome of the game. But ultimately, the best team - the winning team - is the team that puts the most points on the scoreboard. That's how to win - sometimes in spite of poor officiating. Blaming the officials for one's loss is spurious at best, because bad officiating calls can and do happen both ways. The way to win is to score more points than the opponent. The end.

I think business/economic controls are very much the same. Appropriate regulations can seem burdensome, but only if one's business is engaged in inappropriate activities. In fact, unlike sports officials, most government officials actively seek for ways to help folks along in their ventures. At least, that's been my experience.

Either way, the point is that we all deal with and live under various and sundry regulations. The good/successful businesses are those that adapt to the requirements of the regulations. Because in this field, that's how the game is played.

Comments

lillysmum said…
Have you read Piketty's Capital in the 21st Century?
Bill Cobabe said…
No. I just read the Wikipedia article on it though. Looks interesting.

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