Churchill Had it Right
Sep 17, 2021
“Democracy is the worst form of government, except for all others.” Whether you are conservative, liberal or somewhere in the middle, we can all admit the country isn’t at its best right now. Blame whomever for whatever. This isn’t a debate about issues. It’s just a tacit acknowledgement we’re not exactly firing on all cylinders at the moment. The question thus becomes, even at suboptimal performance, what’s the alternative?
In the second quarter of 2021, our national GDP grew over 6.5%, granted the baseline comparison was pretty awful. Unemployment is continuing to come down from pandemic highs. Economically, we’re getting back on track. Politically, well, let’s just say we’ve still got some work to do. But we also saw two private companies launch people into orbit this year. Crypto assets are continuing to gain traction. Sports betting is proliferating. We developed vaccines for Covid in under a year. In other words, our ingenuity is still thriving, fostered by an environment that encourages and rewards risk.
Few would argue our greatest political and economic threat is China. Their growth has been nothing short of stratospheric (if we’re to take their economic reports at their word). Yet for all their successes and opportunities, they really can’t help but shoot themselves in the foot. Whether it’s curtailing crypto or clamping down on gambling in Macau, where the U.S. seeks expansion and sees opportunity, China wants greater control and sees threats. When you spend all your energy suppressing perceived threats to an authoritarian government, it leaves little room to foster growth.
Ultimately, this all comes down to perception. Where the U.S. sees opportunity in the future, China sees threats. We see a half-full glass with room for more to be poured in. China is preoccupied with not letting the water level fall more. It's the difference between playing to win and playing to not lose.There is a fundamental difference between how our two countries view what innovation represents.
What our country will look like in a couple months is anyone’s guess. Covid remains a very real threat to a return to normalcy. There will certainly be more challenges ahead both politically and economically. But if you’re betting on who will come out ahead, it’s tough to argue the U.S. isn’t the chalk. Besides, China doesn’t even want you going over there to bet in the first place.
Written by Dylan Ratigan and Josh Fabian
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastytrade content is provided solely by tastytrade, Inc. (“tastytrade”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. tastytrade, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastytrade is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. tastytrade is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options found on tastyworks.com.
tastytrade is a trademark/servicemark owned by tastytrade.
tastyworks, Inc. ("tastyworks") is a registered broker-dealer and member of FINRA, NFA and SIPC. tastyworks offers self-directed brokerage accounts to its customers. tastyworks does not give financial or trading advice nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastyworks’ systems, services or products. tastyworks is a wholly owned subsidiary of tastytrade, Inc (“tastytrade”).
tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with tastytrade (“Marketing Agent”) whereby tastyworks pays compensation to Marketing Agent to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastyworks. tastytrade is the parent company of tastyworks. tastyworks and Marketing Agent are separate entities with their own products and services. tastytrade has different privacy policies than tastyworks.
Quiet Foundation, Inc. (“Quiet Foundation”) is a wholly-owned subsidiary of tastytrade The information on quietfoundation.com is intended for U.S. residents only. All investing involves the risk of loss. Past performance is not a guarantee of future results. Quiet Foundation does not make suitability determinations, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of Quiet Foundation’s systems, services or products.