The Problem with Running the Country Like a Business

A business isn’t a democracy. America is.

Trump has had a busy first few weeks on the job. He has moved to shut down USAID, issued expansive executive orders, including ending birthright citizenship, removed security details for perceived political enemies, pardoned January 6th rioters, and handed enormous power to the unofficial Department of Government Efficiency to trim the size of government. Among other things.

What is most notable - and concerning - about these actions is that they are all done through ever-expanding executive authority. Trump and Elon have made little, if any, effort to shepherd legislation through Congress. In fact, they seem to view Constitutional governance restraints as mere suggestions. Elon recently tweeted, “Live by executive order, die by executive order.”

It is not altogether surprising. Trump and Elon are doing what they pledged to do: run the government like a business. In Elon’s case, the parallels to his recent Twitter acquisition are strikingly similar.

While many Americans are celebrating this “get shit done” attitude as a refreshing change of pace in Washington DC, there is a fundamental problem: businesses are not democracies. America is.

Whether you agree or disagree with Trump and Elon’s policy efforts, the more fundamental issue is whether America should be run as a constitutional democracy that respects individual rights, separation of powers, checks and balances, and the rule of law - or whether it should be run like a business. The two approaches are not compatible.

Businesses are Great, but They are Not Democracies

As a former start-up CEO, I am a huge fan of the powerful and free-wheeling governance model of most private sector companies. If you want to execute on a vision quickly and effectively, there is no time for red tape and bureaucracy, especially as a start-up that is trying to outperform powerful incumbents.

To be most effective, CEOs need significant latitude to enact their vision, whether it is hiring and firing employees, charting a new strategic direction, creating new product lines or shutting down underperforming ones. Of course, most CEOs have to report to a board of directors, but they are essentially given carte blanche to run the company as they see fit.

I support this model, but it is not democratic. In an ideal world, CEOs choose to be collaborative and empowering, but they are not required to be. They can just as easily be petty tyrants.

And while an unfair or overbearing boss is unpleasant, it is not the end of the world. CEOs can be fired or employees can leave to work at other companies.

Unlike a business, American citizens do not have such safeguards or optionality if their President turns out to be a petty tyrant.

Trump and Elon’s Petty Tyranny

USAID may not be the most cherished government agency, but it was established as its own agency by Congress in 1998 and it cannot be abolished without an act of Congress. Refusing to spend the agency’s budget is also not permitted according to the Impoundment Control Act of 1974.

Birthright citizenship may have negative unintended consequences, but it is clearly established in the Constitution. Overturning it via executive order is unconstitutional.

Voters may justifiably want the government to be more efficient, but DOGE is not an official government department and its legal authority is dubious at best. Congress controls the nation’s purse - not a billionaire “special advisor” to the President.

All of these are examples of Trump and Elon’s loose commitment to the laws established by the American Constitution.

American democracy demands power sharing and deference to the rule of law

One of the key aims of the Constitution is to prevent unchecked power. It deliberately creates the separation of powers and the rule of law to constrain the Presidency. Even if a President is elected with a popular majority, they are not allowed to do whatever they want. They must enact their vision by building legislative consensus and respecting the rights of all Americans. To flaunt these restraints is to flaunt the Constitution.

As James Madison wrote in The Federalist Papers, Number 47:

“The accumulation of all powers, legislative, executive, and judiciary, in the same hands, whether of one, a few, or many, and whether hereditary, self-appointed, or elective, may justly be pronounced the very definition of tyranny.”

It strikes me as a safe bet that if James Madison were alive today, he would be dismayed by the expanded powers of the modern presidency - and especially by the events of the last few weeks.

Does the Constitution doom us to inefficient and ineffective government?

And, yet, I suspect many readers may be asking themselves, “does that mean the Constitution will prevent us from ever getting anything done?” No, it does not.

Congress is more than capable of passing major legislation that makes huge changes to American life. It has done it before and will do it again. The only thing stopping Congress from doing so is the will of the people. Elected officials represent the interests of their constituents. If their constituents want USAID to be shut down, birthright citizenship to be overturned, or massive spending cuts, then members of Congress will support those things.

If Trump is unable to get enough elected representatives to agree with his priorities, that reflects his inability to generate a popular mandate. His 1% margin of victory over Kamala Harris does not give him the right to bypass the interests of Americans who continue to be represented by their elected officials.

While a CEO may fire any employee who disagrees with them, Presidents cannot fire Congress. And any attempt to bypass it should be viewed for what it is: governing weakness that violates the rights of the American people.

A Valuable CEO Skillset

While running the country like a business may be tyrannical, running the country with the focus, wisdom, and effectiveness of a CEO can be a winning strategy. America has seen many CEOs become outstanding political leaders, especially governors.

Mitt Romney inherited a $3 billion budget deficit in Massachusetts and balanced the budget every year without raising taxes. He also signed into law the groundbreaking healthcare reform bill which has contributed to the state being one of the healthiest in the country.

In Colorado, Jared Polis (a NewDeal leader) has overseen strong economic growth and some of the lowest unemployment rates in the country, while also cutting taxes. He managed to do this while also implementing free full-day Kindergarten and universal pre-school, lowering costs for families.

These Republican and Democratic governors brought the skills they honed as CEOs to their roles as chief executives within the government. They focused on economic growth, fiscal responsibility, and highly effective governance. And they managed to do all this without bypassing their legislatures or violating the Constitution.

Trump and Elon’s CEO mindsets are not the problem, but their inability to govern effectively within the bounds of the Constitution is. Americans need to see the distinction and hold them to account.