Dramatic election upheavals are transforming the U.S. and the U.K. and are likely to sweep through Continental Europe in 2017 and Mexico in 2018. The results will vary from good to bad, because there are big differences among the systems of government, the leaders and their ability to change course. Adding to the risk is the fact that political change is coming at a time of financial weakness for many governments. Private sectors have held back on investment and new business formation because of bad macro policies. As a result, productivity is weak, and prospects for growth in small businesses and tax receipts have been severely diminished. Rather than change, governments have tended to borrow and spend without much to show for it other than very high national debt.
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