Field Notes

This is how authoritarianism gains hold in democracies.I often write about continuous improvement…

This is how authoritarianism gains hold in democracies.I often write about continuous improvement…

This is how authoritarianism gains hold in democracies.I often write about continuous improvement as the key to competitive advantage - being open to understanding what you've done wrong so that you are always one step better than you were the day before.Seeing the latest use of the power of the federal government to fulfill a personal vendetta, this time against Chris Krebs and SentinelOne for the crime of choosing integrity over political plays should disgust everyone regardless of personal politics.The pattern is clear and concerning for businesses:➤ Targeting companies like SentinelOne for even employing a person who has disagreed with the administration➤ Using regulatory power selectively - actively investigating, fining, and restricting media companies that don't provide favorable coverage while fast-tracking those that do➤ Issuing executive orders against law firms and barring them from government contracts based not on their performance but on their previous clients they represented in _legitimate_ legal actions➤ Terminating or threatening thousands of contracts and grants _with political oversight_ of procurement decisionsThese actions directly harm businesses by creating the regulatory and economic unpredictability that makes long-term planning nearly impossible.➤ It discourages companies from speaking truthfully about risks and challenges - see Jamie Dimon's cautiously worded statement on the economy this week➤ It forces businesses to consider political alignment in hiring decisions - you'll want to avoid hiring any execs ever employed by another administration➤ It introduces corruption into what should be merit-based contracting processes - better start adding Mar-A-Lago private dinners to the sales budget.➤ It signals to global investors that rule of law is secondary to political loyalty - make sure you only invest in companies that say nice things about the President.Market economies depend on stable, predictable governance where contracts and rules are honored and enforced regardless of political alignment. When political loyalty becomes a prerequisite for doing business with the government, we've moved to a system that destroys American innovation and competitiveness."The first truth is that the liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is Fascism—ownership of Government by an individual, by a group, or by any other controlling private power."Franklin D. Roosevelt - Letter to Congress, 1938