4th Quarter 2020
by Joe A. Hollingsworth, Jr.
Generally, I do not care about a party’s platform, because party platforms are thrown away the moment the President gets elected. But, this time, it is unique. This time, Biden is not disclosing what his policies are; because, as a 48-year politician, he has never had stable policy positions. Plus, the Bernie and AOC wing of the party were allowed to help draft the party platform positions. Progressives control the only key Biden has to victory, so he is dependent on them. Even if Biden just passed 2/3 of these (and other) party positions, he would become more progressive than FDR; and, when you couple that with a vow to break the Senate Filibuster rule, a Biden Senate and House would have no checks or balances.
How does this platform affect real estate, construction, manufacturing, distribution, real estate lending institutions, developers, and related and dependent industries?
• Like Kind Exchanges, which are the pillar of real estate, will be eliminated;
• The capital gains rate would basically be doubled to 39.6%;
• Right to work laws would be repealed, and labor law would be rewritten to favor the unions nationally;
• The Federal Reserve ends up with a new mandate to address racial injustice; and,
• The “Green New Deal” would dramatically increase every industry’s energy and regulatory cost.
Being in real estate for 54 years (yes, I am that old…but I started early, LOL), this would be the most radical change in my lifetime for real estate along with all the above-mentioned related industries. Every existing real estate deal would practically be frozen, and virtually every real estate trade would become far more difficult to justify. The result will be that, if I must pay this much capital gains tax, I will “simply just sit on it”. A great part of America’s “creative destruction” that empowers efficiency and regeneration of ideas and concepts would be greatly diminished. While new startups over the last 20 years are ½ of what they were in the 50s and 60s, per capita, I believe the above rule changes would further devastate startups; because, it raises risk and lowers potential reward. This will produce greater income inequality that they will once again want to tax and redistribute.
Unfortunately, real estate is not the only part of the economy that would be affected by this platform. Virtually every part of the economy is! However, I am trying to point out what is likely to happen to real estate as we know it.
Vote like your economic life depends on it, because it does!
Hollingsworth Companies Named “Company of the Year”
Jan 29, 2019
Founded in 1836, Davie County, North Carolina is a county known for its neighborly attitude, civic pride, and entrepreneurial spirit. Having grown to a total population of approximately 42,000, Davie County is developing a growing suburban population focused on economic growth, and last year led the state with the most new manufacturing jobs.
Hollingsworth Companies has been involved in the Davie County, North
Carolina community for over 20 years. Since the initial purchase of
45 acres in 1997, The Hollingsworth Companies’ South Point Business
Park in Mocksville, North Carolina has grown to include nearly 200
acres and 9 buildings with a 10th in progress. With
continued support from local and county officials, the development of
The Hollingsworth Companies’ most recent 85-acre expansion will
establish this Mocksville SouthPoint Business Park as one of the
largest semi-rural industrial parks in the state.
Each year, the Davie County Chamber of Commerce hosts an Annual
Awards Gala highlighting achievements of the past year and honoring
recipients of their signature awards: the Business of the Year Award
and E.C. Tatum Humanitarian Award. The distinguished Business of The
Year is given to a company that has made a significant contribution
and had a positive impact on the local economy. Because of the 20+
year community involvement, the continued county support in the best
and worst of economic cycles, and the assistance in bringing 7
companies and over 400 jobs to Davie County, The Hollingsworth
Companies has proudly been named as the 2018 Davie County Business of
the Year. This award represents a long-term and successful
partnership with the Davie County community, and The Hollingsworth
Companies looks forward to continuing to market the benefits of Davie
County as it is too great to dream small dreams.
For more information on available properties or Build to Suit/Lease to Suit opportunities in the Davie County SouthPoint Business Park, contact Tom Mann at email@example.com.
In The Southern Advantage, site selection expert, Joe Hollingsworth, tells you how to find the best location in America for your business! Click below to get your free copy today.