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Jack Kessler @jackkessler.bsky.social

The rule of law isn't a prerequisite for economic growth (see China), nor is it a guarantee of boom times (see the UK or EU). But without it, America is giving up its defining advantage. And for what? My newsletter, out now.

aug 27, 2025, 8:27 am • 17 9

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Jack Kessler @jackkessler.bsky.social

"Does it please the dictator?" has been tried before and as a theory of growth has its limitations.

This month alone, he has fired the head of the Bureau of Labor Statistics for reporting disappointing job numbers, attempted to remove a Federal Reserve Governor for declining to cut interest rates alleged mortgage fraud and doubled tariffs on many Indian exports to 50%. In isolation, each decision is damaging. Accurate economic data gives businesses and individuals the confidence they need to make informed decisions. Central bank independence allows for lower interest rates. While a stable tax system promotes long-term investments and reduces opportunities for corruption. But this is not purely about unrelated economic acts of self-harm1. These decisions, taken together, both seek to and succeed in undermining America’s single greatest asset: the rule of law. In its place would be another nation where the only question that matters is, “Does it please the dictator?”
aug 27, 2025, 8:32 am • 2 0 • view
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Jack Kessler @jackkessler.bsky.social

A flourishing private sector, underpinned by regulatory stability, is where independent sources of wealth and power are created. Which is why despots hate it.

aug 27, 2025, 8:36 am • 2 0 • view
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Jack Kessler @jackkessler.bsky.social

America under Trump is voluntarily(!) giving up:

The global reserve currency — the exorbitant privilege that keeps US borrowing cheap The power to impose financial sanctions — and have the world follow suit Outsized foreign direct investment Influence over global technical standards Foreign students — who fund universities and stay on to build tech unicorns Soft power (see: Coca-Cola, people all around the world walking around with ‘I ❤️ NY’ t-shirts)
aug 27, 2025, 8:41 am • 4 0 • view
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Jack Kessler @jackkessler.bsky.social

Sorry sorry but I keep thinking about this scene. Kirk: I sleep in a racing car, do you? Homer: I sleep in a big bed with my wife.

aug 27, 2025, 8:42 am • 2 0 • view
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Jack Kessler @jackkessler.bsky.social

But really, takes some doing to make the issuer of the global reserve currency look like an emerging market.

The dollar's relationship with US yields has broken down
aug 27, 2025, 8:45 am • 2 0 • view