America’s economic renaissance – Moneyweb

The re-election of Donald Trump, supported by influential allies like Elon Musk, signals a new chapter for America. Their commitment to economic reform, innovation, and cultural renewal comes at a critical time.

With policies aimed at dismantling bureaucratic inefficiencies, fostering entrepreneurship, and addressing cultural divisions, this leadership team is laying the groundwork for long-term prosperity.

Read: Trump promises ‘common sense’ ideas in inaugural address

Efficient institutions are the foundation of economic success.

The late American economist Douglass North emphasised that transparent systems that protect property rights and reduce uncertainty allow markets to thrive.

However, America’s institutions have become bloated, unaccountable, and increasingly politicised, hampering their ability to foster growth and innovation. Trump is tackling these inefficiencies head-on.

By streamlining government processes, reducing red tape, and curbing the influence of unelected officials, Trump’s policies aim to create a leaner, more accountable system.

Research shows that excessive bureaucracy stifles entrepreneurship and innovation. Trump’s focus on institutional reform aligns with decades of evidence supporting the need for efficient, transparent governance as a driver of economic vitality.

Read:
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Fostering innovation through strategic alliances

Innovation is a cornerstone of long-term economic prosperity.

The late Austrian political economist Joseph Schumpeter’s concept of ‘creative destruction’ explains how technological advancements disrupt old industries and fuel growth.

Few embody this principle better than Musk, whose work in electric vehicles, renewable energy, and space exploration has revolutionised global industries.

Musk’s success illustrates the transformative power of entrepreneurship and the importance of fostering an environment where innovators can thrive. His alignment with Trump reflects a mutual commitment to entrepreneurial freedom and forward-thinking economic policies.

By nurturing partnerships with leaders like Musk, Trump is ensuring that America remains a global leader in technology and industry, driving long-term growth and competitiveness.

Countering wokeism

Cultural cohesion is critical for economic stability. Societies that share common values and priorities build trust, cooperation, and resilience, which are essential for progress. However, the rise of woke culture (a movement emphasising extreme political correctness and identity politics) has disrupted this cohesion.

Wokeism often prioritises ideological conformity over merit, creativity, and open dialogue.

This can stifle innovation and discourage the free exchange of ideas, essential components of a thriving economy.

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The late US economist Gary Becker’s research on human capital highlights that rewarding talent and effort, rather than identity, is key to maximising economic potential. Yet woke-driven policies undermine these principles, leading to inefficiencies and economic stagnation.

At the 2025 World Economic Forum Meeting, President of Argentina Javier Milei described wokeism as “the great epidemic of our time that must be cured”. He criticised its divisive effects on society and its role in weakening institutions.

Trump has taken a similar stance, opposing cultural overreach and championing the values of meritocracy, individual freedom, and shared purpose. This approach is designed to unify society and foster an environment where creativity and collaboration can flourish.

Read: The home of the brave

Reducing ideological overreach in business

One of woke culture’s most harmful effects has been its intrusion into the corporate world.

Businesses pressured to adopt politically charged stances often alienate consumers, disrupt workplace dynamics, and lose focus on core objectives.

Companies thrive when they prioritise value creation, innovation, and productivity over ideological battles.

Musk, a vocal critic of politicising business, advocates for growth and innovation. Trump’s pro-business policies aim to support businesses in staying focused on what matters: delivering value and driving the economy forward.

A vision for prosperity and unity

Trump represents a bold response to America’s economic and cultural challenges. By addressing entrenched inefficiencies in government, fostering entrepreneurial partnerships, and challenging divisive cultural trends, he is positioning America for sustained prosperity.

This vision is not about reversing progress but about creating a future-focused framework that prioritises innovation, opportunity, and unity. Institutional reform will ensure a robust economic foundation, entrepreneurial freedom will drive innovation, and cultural cohesion will foster trust and resilience.

Together, these pillars create an environment conducive to long-term growth.

Dr Francois Stofberg is a financial well-being economist at the Efficient Group.

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