Business leaders’ myopic reversal on Donald Trump

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The hunt for lower taxes and less regulation ignores major economic risks

When a mob of Donald Trump’s supporters attacked the US Capitol on January 6 2021, many business leaders who had backed the outgoing president finally threw in the proverbial towel. Blackstone’s Stephen Schwarzman called the assault “appalling”, and investor Nelson Peltz said he was “sorry” for voting for the incumbent. The remorse of wealthy donors appeared to be evidence of the end of Trump. But “Teflon Don” has bounced back. So, too, has the support of America’s tycoons.

Universal levies may also harm businesses if they are not met with domestic investment — a likely scenario should Trump win, as he has railed against President Joe Biden’s Inflation Reduction Act. The US economy’s success compared with other developed countries during Biden’s presidency seems of little consequence to business leaders supporting Trump. They fear Biden’s tax plans, are perturbed by his administration’s interventionist and antitrust policies, and question his mental acuity.

 

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