As we anticipate the selection of presidential candidates by the two major parties, an unexpected revelation emerges. It used to be Republicans who said they were for small government and market solutions, while Democrats deemed an expanding government should provide desired results. 

Regardless of their eventual nominee, Democrats will likely stick to a top-down system, using industrial policy, taxes, rules, and transfer payments to shape outcomes. The cost is considered incidental under their economic framework, Modern Monetary Theory (MMT). In simple terms, you borrow what you want. This approach is not unique to the Democrats. Trump’s Republican party appears to be following a similar path, leading to a surprising convergence in economic policies that makes the two parties more alike than different.

It’s intriguing to note the significant shift in the Republican party’s historical stance as the advocate for small government. Under Trump’s leadership, the party has surprisingly adopted a similar approach to the Democrats, favoring a larger government and increased intervention. This shift is evident in President Trump’s tenure, which saw record Debt, an unprecedented shutdown of the economy during COVID-19, and a lack of effort to curtail government rules at all levels. The party’s reluctance to reform entitlements, a stance it shares with the Democrats, almost guarantees either higher taxes or massive borrowing or both. Imposing the 20% social security dictated by lack of funds is a political non-starter.