In his new book, “How Countries Go Broke: The Big Cycle,” billionaire investor Ray Dalio presents a critical analysis of former President Donald Trump’s governance style. Dalio asserts that Trump is acting as a chief executive without a board, seeking to expand executive power at the expense of democratic norms. He emphasizes the need for regular assessments of the well-being of the bottom 60% of Americans, highlighting economic disparities as a significant concern.
This is a troubling issue that Ray Dalio, the founder of Bridgewater Associates, one of the world’s largest hedge funds, brings to light. The national debt of the U.S. federal government has passed $36 trillion. He calls this debt the country’s biggest crisis and writes about what he calls the “Big Debt Cycle.” In his book, he offers strategies for individuals to safeguard themselves against potential economic fallout stemming from this growing financial burden.
The investor hits the Trump administration’s infrastructure-focused cost cutting measures. For the public good Dalio holds that these policies, monetary and fiscal, will be tremendously damaging to our economy and society. He cautions that authoritarian leaders are quick to exploit crises for their own agendas. They intimidate or co-opt any opposition, amend legislation to grant them special authorities, and control the media narrative to push their agenda. Yet rather than solve problems, this pattern, he argues, is already having disastrous effects on Trump’s style of governance.
In his latest LinkedIn post, Dalio draws disturbing historical parallels between what Trump is doing today and actions taken by past U.S. presidents such as Andrew Jackson and Franklin D. Roosevelt. He calls Trump a demagogue. Which, of course, makes Trump the kind of political actor that accrues influence by appealing to people’s anger, fear, bigotry and wish fulfillment.
As Dalio prepares to celebrate 75, he stops to consider how he got here. He’s an OG of the 2016 revolution – from his middle-class upbringing on Long Island to being the scourge of Wall Street. His early interest in investing began at age 12 while caddying at a local golf course, setting the stage for a career that would lead him to predict significant economic events such as the 2008 financial crisis.
Dalio’s insights into the current political climate raise important questions about the direction of American democracy under powerful leaders who seek to consolidate authority. He advocates for a return to collaborative governance across party lines, arguing that successful leadership should prioritize unity over division.