How constitutional guardrails have always contained presidential ambitions

(The Conversation is an independent and nonprofit source of news, analysis and commentary from academic experts.)

Victor Menaldo, University of Washington

(THE CONVERSATION) As Donald Trump’s second inauguration fast approaches, concerns he threatens American democracy are rising yet again. Some warnings have cited Trump’s authoritarian rhetoric, willingness to undermine or malign institutions meant to constrain any president, and a combative style that strives to stretch executive power as far as possible.

Authoritarianism erodes property rights and the rule of law, so financial markets typically respond with alarm to political unrest. If major investors and corporations really believed the United States was on the brink of dictatorship, there would be large-scale capital flight, equity sell-offs, spikes in U.S. credit default swaps or rising bond yields unexplained by typical macroeconomic factors such as inflation forecasts.

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