Business interests represented by Wall Street do not have a political home with either the Democrats or Republicans this election cycle. Trump’s selection of JD Vance as a running mate has thrown the finance and business interest groups for a loop, as neither party now conforms to the pro-business agendas both parties used to tout.
Shift in Political Alignment
For decades, the business and investment community could count on Republican candidates who shared and promoted their interests in reducing taxes and regulations. Now, however, the Democrats have moved to a more progressive left, and the Trump-Vance combo has tilted right-wing populist with the announcement of Vance as the Vice Presidential Candidate.
JD Vance’s Divergence from Traditional Republican Interests
Despite his few years as a venture capitalist before becoming a Republican Senator from Ohio, Vance’s financial worldview does not perfectly align with the establishment Republican business interests corporate leaders have come to expect.
Vance’s Independent Stance
Vance, one to think for himself after overcoming a tumultuous childhood to graduate from Yale Law School, favors protective tariffs and antitrust activism.
Collaboration with Progressive Leaders
Vance worked with progressive Senator Elizabeth Warren from Massachusetts to reduce bank executive bonuses. He also joined Senator Sheldon Whitehouse, a Democrat from Rhode Island, to end the privilege of tax-free stock swaps during corporate mergers.
Vance was an outspoken critic of Norfolk Southern Railroad Corporation following the 2023 train derailment in East Palestine, Ohio. He has also supported calls to treat university endowments as corporations rather than nonprofit entities, eliminating tax breaks for donations from wealthy donors.
Government Regulation Views
While run-of-the-mill Republicans in Congress attempt to reduce government regulation, Vance has suggested reducing the number of long-term supposedly apolitical career staff and instead filling seats at government agencies with political appointees who will more swiftly implement and reflect the administration’s agenda at the time.
Proposals for Political Appointments
Vance has suggested that these powerful political appointments should be given to proven technology innovators and successful business billionaires, such as Peter Thiel and Elon Musk.
Market Concerns with Vance’s Proposals
While these Innovators may be popular on some level with Wall Street, Investors, and Business interests, the markets and businesses prize reliability, stability, and predictability.
For example, nothing Thiel or Musk touched could be described as aligning with the status quo. Transforming agencies and processes are only some business-friendly practices prized by these industry groups.
Vance’s Personal Financial Investments
Vance’s personal finances, as revealed in Senate financial disclosures, reveal a modern millennial “tech-bro” portfolio. He invests in startups and Bitcoin, has a Robinhood brokerage account, and makes more traditional investments such as ETFs, including the S&P 500 and Oil Funds.
Alignment with Populist and Anti-Establishment Views
Despite his alignment with the populist branch of the modern Republican party, as led and imagined by Trump in 2016, Vance is also captivated by the anti-establishment tenets of some left-leaning groups.
In June, he told New York Times columnist Ross Douthat, “The people on the left, I would say, whose politics I’m open to– it’s the Bernie Bros,” primarily due to their suspicion of unbridled corporate power.
Business Interest Reactions
While many Americans are working out how a Trump-Vance alliance will affect their pocketbooks and economic situation in these tough inflationary times, business interests have been wary for months, awaiting the announcement of Trump’s running mate.
Industry Expert Opinions
A managing principal at Vogel Group, Samir Kapadia, said, “Good for Trump, very challenging for corporate America.” Another DC consultant, Milan Dalal from Tiger Hill Partners, said, “I don’t think CEOs aligning with Trump realize how dangerous the economic populism will be.
Right now, they think they’ll get more tax cuts. But many of these MAGA figures favor higher taxes, at least for individuals, and using the tax code and other elements of government to enact revenge against their ideological opponents.”
Alternative Running Mate Options
Business interests would have been more traditionally protected had Trump selected a more predictable running mate such as seasoned and tried Governor Doug Burgum or South Carolina Senator Tim Scott.
Business Preference Between Trump-Vance and Biden
Still, the general consensus among business interests is that the Trump-Vance populism will likely still be more business-friendly than the Biden Administration, which has eroded business interests through years of tightening federal regulations and harping on corporate greed.
