In democracies, political parties need money to run elections. Many who support a party will donate money and most will be under $100 or what is called small dollar donations. Most people who give money on the small dollar donation do not expect much reward from their government but have an expectation of good government by their definition. The difference in what is good government is often the difference in which political party is in power. Once someone goes above $500, they want something more tangible from the government, including if they personally know the person running.
Elections are expensive and billions of dollars were spent on the past election, including $1 billion by the Democrats and $ 400 million for the Republicans directly. The rules were loosened up to allow for third parties to spend for one party or the other and they spent $500 million plus. The issue is what do people want for their money?
In an article by Nathan Gomes and Zajeer Kachwala of Reuters, Elon Musk who founded Tesla, Space X, bought formerly Twitter to become X, SolarCity, xAI, Starlink and others, what does he want or expect from President Trump? After the election of President-elect Trump, Tesla shares jumped 14% on the expectation the new administration will help Tesla. It has been reported Mr. Musk spent around $250 million on supporting Republicans.
Some of the above companies do not fit into President Trump agenda, some do. What benefits will Elon get? Mr. Musk is leading a committee to cut costs, will any of the billions his companies have received from government be cut? or are they good investments? what will or will not Mr. Musk recommend to be cut?
Linking to dividend paying stocks, most profitable stocks align themselves with lobbying groups to ensure their interests are taking care of when legislation is proposed. Most politicians want to meet with senior executives of profitable companies because they have a wide range of assets including a portfolio in many states. It is a balancing act and as long as their interests are taken care, companies can work with either the Democrats or Republicans, it is seemingly easier for one over the other. You do not necessary see in the front pages the quid pro quo question of what do you want that you see with Elon Musk, but it is there.
There are more questions than answers, till the next time – to raising questions.