Wednesday, November 04, 2020

Doing Nothing In Times of Uncertainty

As of this writing, the President and Senate races haven't been resolved, but the trends lean toward Joe Biden and a Republican majority, respectively.

With the House of Representatives secured by Democrats, it is almost certain that the United States will again have a divided government, that is, where the President and at least one house of Congress will be controlled by opposite political parties.

It's been fashionable to lament the brakes the Founders put in to the Constiution--six-year terms of Senators, two Senators for each State regardless of size, the Electoral College, the difficulty in amending the Constitution, even the permissibility of divided government--but when the country is split relatively evenly and the sides are far apart, the wisdom is clear.

It's very difficult to enact major changes; either the sides compromise or nothing happens. And sometimes nothing is the way to go.

The stock market, which has moved upward during the week, likes the prospect of nothing.

So a tip of the hat to the Founders, who knew nothing about the technological and scientific wonders of the 21st century but knew a lot about human nature.

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