When my economics professor was teaching Game Theory last year, I was not aware that that knowledge can help explain political moves too. What do you think about the latest naming of Sandy Baruah as SBA chief? A president who is blamed for not taking care of small businesses in last 7 years, will he do something to help them now? Well, even I dont know the real reason, but here is something that may make sense:
1. Sandy Baruah is an Indian-American
2. In the past Indian-Americans have generally supported democrats. Even this time Obama is supposed to get majority of those votes
3. In the Democrats controlled congress, Democrats will face the tough choice of supporting or not supporting the nomination of Sandy Baruah as SBA chief.
4. If Democrats do support Sandy's nomination, because Republicans nominated Sandy, they will gain some popularity among Indian-American voters which should help in the upcoming elections.
5. If Democrats dont support Sandy's nomination, Republicans got what they wanted, yeah, some more votes from Indian-Americans.
Bottomline, I am not sure whether this move is good or bad for small businesses, but it looks like a great strategic move for Republican party. They are set to gain either way.
Do you still think it was about small businesses?
Monday, June 30, 2008
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