Wednesday, February 17, 2016

Which one of the Presidential candidates is the most pro innovation one?

As of February of 2016, there are four front runners of the 2016 President Election. Hillary Clinton and Bernie Sanders are the leaders among democratic party candidates. Donald Trump and Ted Cruz are the leading candidates of republican party. Each of them has distinctive economic policy. Although they all claim to revive the US economy, each of their policies do have a different propensity towards the type of the economy their policy are going to benefit most.

Among these four candidates, Bernie Sanders and Donald Trump have more polarized economy policies than Hillary Clinton and Ted Cruz. The primary policy of Bernie Sanders is to provide free healthcare to everyone. If this policy is implemented, we would expect less price competition among healthcare providers. This will likely slow down the innovation in the healthcare sector. Donald Trump advocates heavy tariff against China and Mexico, which will benefit the economy in the short term due to the decreases of the out sourcing. However, in the long term, it will reduce the competitiveness of US economy due to the protection of the government. Donald Trump's policy is also not pro innovation.

Ted Cruz advocates broad tax reduction, however, the scale of the tax cut is so big that people will doubt about the financial feasibility of the plan. In addition, it is not obvious how the innovative product or service is going to benefit from this plan uniquely.

Hillary Clinton's economic policy is more progressive, she focuses on growing small business with less red tape. Given most of the startup companies all starts small, I think her policy is probably the most innovation one among all.