The Confluence of the Political Parties in America

Republican Party Candidate

Crucial differences exist between the two political parties, Republican and Democrat, that dominate the political landscape in America.  The trend, however, has been for these two entrenched parties to become more alike than they are different.  Of course, there are and always will be groups of people who operate at one end of the spectrum or the other, but overall the trend has been for these two parties to congregate closer to the center, making the differences between the political parties less obvious.  The two-party system in America has dominated politics since its founding in 1776.  Recently, new movements have emerged such as the Tea Party and the Independent party.  According to a recent Wall Street article, Americans are becoming less enthusiastic about existing political parties and they have been losing market share for four decades.  In 1970, 49% of respondents chose Democrat and 31% called themselves Republican.  Today, 35% say Democrat and 28% say Republican.  The only real growth has occurred among voters who decline affiliation, with independents increasing from 20% to 28%.  In my opinion, this trend could continue well into the future.  To date, the impact of the Tea Party candidates and Independent candidates has been minimal but as both major political parties disregard public opinion, the rise of the independent movement will continue.

Democratic Party Candidate

Is the political duopoly in trouble?  Although the Republican and Democratic parties benefit from what social psychologist define as existence bias, their fate may not be as iron-clad as once thought.  WSJ cited the well-known duopoly of AT&T and MCI.  MCI became history's largest bankruptcy in 2003 and AT&T is struggling to maintain market share against companies such as Verizon.  They also reference Kodak, once thought to be infallible, having an amazing 96% share of the US market for film.  Enter Fujifilm and another duopoly was created.  This duopoly would not last.  Kodak's share price tumbled from $60 in 2000 to below $4 by 2011.  The digital revolution changed this duopoly forever.  Could the same fate await one of the political parties?  It's unlikely given their level of entrenchment and their ability to tap a constant revenue stream. 

___________ Party Candidate?

However, political backlash, increased transparency, and advancements in technology are revolutionizing the political process and may lead the way to a  3rd and possibly even a 4th political party in decades to come as evidenced by the rise of the Tea Party and the growing fascination with independent party candidates.  The impact of all this on real estate is difficult to gauge, but it's easy to surmise that the changing political landscape will dramatically impact much of the real estate industry.  The political process and its outcomes always play an important role in shaping the real estate industry.  There's no two ways about it!