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An attempted coup instigated by a defeated president. This is a plot line for a Tom Clancy novel that would not happen in the Citadel of Democracy. But it was like that yesterday. It was the most significant attack on the U.S. Capitol since the British invaded in 1814.
That disturbing spectacle inundated the other big story of the day: the election of two Democratic senators in the heart of the once solid South to give control of Congress to the new president's party. Many political analysts in Georgia have also attributed this to President Trump. As always, the outgoing president is the focus of attention.
For companies, it is the second story that significantly changes the outlook for the next four years. Many business leaders hoped for a different outcome – a divided government with a focus on centrists like Romney, Collins, Manchin and Warner. With clearer scrutiny in democratic hands, the president will be under more pressure to live up to his progressive caucus – which is likely to cause bigger headaches for business.
Most disturbing is the fact that a significant segment of the American public – including a number of CEO Daily readers – sincerely believes that the November elections were fraudulent despite 50 states and about 60 courts saying otherwise. According to YouGov, 45% of Republican voters are in favor of storming the Capitol Building based on what they read or heard about the event. It is hard to see how democracy survives when the most basic facts of public life are up for grabs and immune to resolution.
You can read Fortune's coverage of the Washington uprising here and here, and the Georgia Senate race here and here.
More news below.