In the modern history of American politics, the Republican Party has been the main proponent of limited government and free market economics. Many Republicans take the stance that the government is incompetent and overreach, recalling Ronald Regan’s famous quote, “The nine scariest words in the English language are: I’m from the government, and I’m here to help.” But Governor Ron DeSantis uses government power as a tool to manipulate private businesses. His approach is not only contradictory to his party’s historical platform, but also fiscally reckless.
For more than a year, DeSantis has been waging a notorious legal battle with his state’s largest private employer – the Walt Disney Company – based on the fact that the company spoke out against his “Don’t Say Gay” law. Disney has called the war an unjustified retaliation by government power and a direct attack on their freedom of speech. But this is not the only instance in which the Governor has interfered in a private business for ideological reasons.
After launching a partnership with transgender influencer Dylan Mulvaney in March, Bud Light and its parent company AB InBev faced harsh backlash from the conservative base and were boycotted by those who disliked the influencer’s association with the beer. Had refused to happen. As this was a hotly debated cultural issue, DeSantis distinguished himself by attempting to push a social narrative that Disney was a “woke” company by vocally supporting the boycott and regularly mentioning Bud Light. Took the opportunity to create a central figure. American public.
Using elected office to interfere in the operations of a private company is contrary to traditional Republican principles. But even if we ignore that fact, it can’t be ignored that DeSantis’s determined efforts to position himself as the anti-government candidate have cost his own state millions .
Although he is pursuing his anti-establishment brand of politics, DeSantis failed to take into account the impact of the Bud Light boycott on Florida’s state pension plan—which holds an estimated $50 million worth of AB InBev stock. The most recent report shows beer sales have declined 26.5% since April, and shares of AB InBev are down nearly $10.
DeSantis has since launched a government investigation into whether AB InBev breached its duties to its shareholders by beginning its partnership with Mulvaney, accusing the company of neglecting its stakeholders by associating with “radical social ideologies”. -resulting in a boycott and a decline in the share price. , But this investigation is unique in that DeSantis encouraged the boycott, which resulted in lost sales. DeSantis either knew (and didn’t care) that Florida’s state pension fund owned AB InBev shares that a boycott would compromise, or he didn’t know and put his own constituents’ retirements at risk. . Nor a good look for a presidential candidate who has already been branded a reactionary by his opponents and who desperately needs someone to endorse to save his candidacy.
The legal precedent of the Business Judgment Rule will almost certainly protect AB InBev, because the rule assumes that managers will not make optimal decisions all the time and there is no evidence that the board of directors clearly violated its fiduciary standards, The courts will not review. Or question his decisions. Still, this latest action by DeSantis should worry potential voters. His actions show that he is very willing to use elected power to retaliate against private companies for their ideological stances and business strategies.
DeSantis’ willingness to engage and eager to oppose corporate America over cultural, social, and political stances resembles authoritarian rule more than free-market theory. A poll conducted at the height of the Disney showdown in April 2022 indicated that 62% of Americans, including 55% of Republicans, were less likely to support a candidate who punished companies for their political views. Besides, how much more are Florida taxpayers willing to spend on yet another lawsuit against a mega-corporation that will make its way through the court system for years?
DeSantis and other Republicans who are making the culture wars a strong point of their platform should think long and hard about the consequences of their actions in punishing private actors. The damage caused by this type of conduct can extend far beyond individual political careers, and the impact on the perception of the Republican Party as a whole cannot be underestimated. The party of free markets is rapidly turning into an anti-business party.
Addison J. Hosner is the Chief Operating Officer of Washington, DC-based Young Voices, and is a licensed Florida attorney.
Source: www.sun-sentinel.com
