Linked World

Inextricably Intertwined

Traditionally, business and politics have been separable in LinkedIn, but their overlap since November is far too substantive and immediate for that fiction to be further entertained.

And yet there are people on LinkedIn who still loudly complain that they come there to discuss business and are offended to see political discussion, as if it were mere distraction.

I don't know whether such remarks are born of obliviousness or privilege, but in my view these pleas lack grounding in practical reality. If there were a way to speak of business without reference to politics, I would do it out of mere simplicity. Why involve irrelevancies? But the two are just far too intertwined. US politics is no longer some minor detail, distinct from business. It is central to US business right now.

Some will see this shift as positive. Others will see it as negative. I'm one of those seeing consistent negatives. But whatever your leaning, it seems inescapable that politics is suddenly visibly intertwined with markets and products in new ways. Not every discussion must factor it in, but when it happens, it's not mere rudeness that has broken the traditional wall of separation. It's just no longer practical to maintain the polite fiction that there's no overlap.

Practical Examples

I find it impossible to see how a seismic shift like the US is undergoing could fail to affect funding sources and trends, individual business success, entire markets, and indeed whether the US is a good place for people to invest in, go to school in, or vacation in.

Nor are the sweeping effects of DOGE, Musk's Department of Government Efficiency, an issue of pure politics. Its actions have clear business impact. As Musk wields this mysterious and unaccountable force to slash through the heart of government agencies with reckless abandon, there are many clear effects that will profoundly affect business.

• Scientists at the US Centers for Disease Control (CDC) and elsewhere have warned about the possibility of a bird flu or other pandemic. The CDC tracks and seeks ways to prevent pandemics, but that work is now under threat by an anti-science administration. As the Covid experience tells us, there is a business impact to pandemics if we allow them to just happen. A report in the National Institutes of Health (NIH)'s National Library of Medicine places that cost at about $16 trillion dollars.

• The Federal Aviation Administration (FAA) is important to keeping planes in the air and having them not crash into one another. Business people do a lot of flying, so their needless deaths in the aftermath of FAA layoffs can presumably affect business. And it won't help people if the public develops a fear of flying.

• The Food and Drug Administration (FDA) is in charge of making sure the food we eat does not poison us or that the drugs we take have at least a bounded degree of risk. It's the kind of thing you don't think might be business related until we enter a world where employees might go home any old day and just die because we are edging toward a society where you can't take food and drug safety for granted as a stable quantity any more.

• The National Oceanic and Atmospheric Administration (NOAA) is responsible for tracking storms so that damage, injury, or death can be minimized. And then and the Federal Emergency Management Agency (FEMA) helps the recovery afterward. It is hard to see how a major storm could affect people, cities, or geographic regions without affecting the employees, customers, and products of businesses. Do I really have to say that? If people think there is a separation between business and politics, I guess I do.

  And then of course NOAA does work to study Climate Change, too. Not only has such study suggested that Climate Change is an existential threat to civilized society, perhaps to all humankind, but it turns out that if human society falls or humans go extinct, that will affect business, too. And maybe soon enough that people still alive now, even if they have no care about future humans, still need to care because it could affect them or those they love.

It used to be that business did not have to worry about such things as much exactly because government used to see it as its job to invisibly take care of these many things. But this change in politics is not just a change in spending, but a shift of responsibility from the government to businesses and individuals. They'll have to look out for themselves now. That is a big deal thing that will affect businesses—their products, employees, and customers in profound ways. All the more so because the present administration changes its mind daily in ways that seem to have no plan, so uncertainty abounds. Business hates uncertainty.

Unemployment

Additionally, the many layoffs in government mean additional unemployment, which itself has business effect. Perhaps some will rejoice at a plentiful supply of potential workers or the fact that they may accept lower wages. But, meanwhile, those unemployed were also the customer base of other businesses who will be less happy. Those people aren't in a position to buy as many things—not just luxuries but essentials like food and rent and healthcare. Perhaps others in their families will pitch in to help them survive, but then those people won't be in a position to buy as many things either.

Mass layoffs do not happen in a vacuum. Those political choices will show up on the bottom lines of businesses. Some businesses may not survive that loss of business, creating a cascade effect.

Racism and Xenophobia

Racism and xenophobia are on the rise. Recent ICE actions seem designed to send the message that we purposefully treat some humans like vermin. “Stay away,” it screams to a large swath of the global population, some of whom we might like to sell to or have invest in us.

It began by going after the undocumented, surely because they are easy targets. That circle is expanding, and it seems unlikely to stop any time soon. The goal seems to be to end any sense that anyone has rights at all. That creates a lot of uncertainty about what is allowed in the way of both speech and action. Such uncertainty makes it hard to plan and manage anything from the selection of an appropriate employee base to how products will be positioned and marketed.

Also, it's an ugly truth that the US relies on already-terrified undocumented employees to accept very low wages, sometimes perhaps skirting wage regulation. Many US businesses will lose access to such cheap labor. The ethics of having relied on this population in this way are certainly tangled and I don't want to defend this practice. But for purposes of this discussion I simply observe that this change will have business effects that may affect both prices and product availability.

It is as if the administration's answer to immigration concerns is to make the US seem as utterly hostile to anyone who is not a native-born, white, Christian male. These trends already affect who feels safe coming to the US to trade, to study, to do research, and to found companies. It's going to be hard to unring that bell.

Rule of Law

In addition, this process seems to be having the side-effect of diminishing rule of law generally. By asserting that due process is not required, when plainly it is, a test of wills is set up between the executive and the rest of the government as to whether the President can, by mere force of will, ignore the Constitution entirely.

The clear intent is to establish us as a bully power, to say that worrying about whether foreigners like the people of the US showed weakness, and that we must make the world fear us. That shift cannot help but affect who will do business with us and how.

We cannot expect our global peers, already horrified by the recent shift in our choice of which foreign entities to fund or ally ourselves with, to shrug these matters off in business with a casual "oh, that's just politics."

Education

Also, higher education is under assault. There is a complex ecology here because people from around the world have revered our universities as places they could send people to acquire a world class education. But with research funds being cut, that may no longer be so.

That the US Government seems intent on snatching foreign students off the street does not make this picture any better. It becomes a reason for international investment dollars to go to other countries where it is safe to walk the streets.

International Investment

The education system is not cleanly separated from the business community. There is a complex ecology in which many businesses locate themselves near universities to have access to the best human talent and research the world has to offer. As US educational institutions are undercut, and the administrations anti-science agenda is pursued, foreign businesses that take education and science more seriously may look elsewhere for leadership.

These capricious changes—the sense that nothing is promised or certain—may affect the reputation of the United States and trust in the US dollar. The present administration wants more control of the Federal Reserve, which has traditionally operated independently. If that happens, it could worsen faith in the US dollar.

The US has also weakened enforcement of anti-bribery laws for dealing with foreign governments. Perhaps some will regard this relaxation of ethics good for business, but whether you do or not, it is most certainly a major change.

And the US is demonstrating on-its-face incompetence at every level of government because everyone with a brain is deferring to someone who plainly lacks either understanding or caring about the damage he is doing. Foreign businesses and governments used to look to the US as a place that had something to teach, but as this incompetence continues unchecked, it cannot help but hurt our reputation internationally.

Philosophy of Government

There is a definite push to “run government like a business.” I think that's a terrible plan, as my recent essay Government is not a Business explains.

But whether you think running government that way is good or bad, it marks a profound shift. More privatization and, with that, probably more corruption. These are things that will profoundly affect not just the US political landscape, but also its business landscape.

Not Separable

Hopefully these examples make it clear that politics and business are no longer separable. It is simply impossible to discuss business in a way that neglects politics. All business in the US is now conducted in the shadow of a certain GOP Elephant that manages to insinuate itself into every room.

 

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Author's Notes:

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Some parts of this post originated as a comment by me on LinkedIn. Other parts were written separately with the intent of being yet another comment, but I finally went back and unified the two and pulled this out to a separate post where I was not space-limited.

The vague approximation to the LinkedIn logo was created by me from scratch in Gimp by looking at the LinkedIn logo and doing something suggestive of the same look. A globe image was obtained from publicdomainpictures.net under cc0 license, and post-processed by me in Gimp to work in this space. I just made guesses about sizes, proportions, fonts, and colors. At no time were any of actual logos used for any part of the creation.