Letter of the Week:
A president who knows nothing about business
“Recently, dozens of top Fortune 500 executives, primarily Republicans, met at the Yale Chief Executive Leadership Instituteโs CEO forum and expressed ‘worry that Trump is undermining an economic system that took decades to build โฆ all for short-term gains โฆ a hollowing out of U.S. economic foundations and institutions.’ (Fortune, Sept. 21)
CNBC reports many of Trump’s appointees regularly disregard expert business advice and have abandoned evidence-based business principles, harming in just 325 days of Trump 2.0 the following industries: agriculture, automotive, construction, consumer goods, manufacturing, mining and retailing. This begs the question: what industries have not been harmed by Trump 2.0?
Concepts such as stable markets, free competition and long-term business investment are taught in a freshman-caliber macro-economics class. Yet evidence is replete that Trumpโs policies are undermining these core concepts. CEOs have described the administrationโs approach as politically driven and disruptive to the most basic of business fundamentals (Fortune, July 10).
CNN reports a lack of strategic planning and erratic policies under Trump 2.0 have resulted in economic instability, market volatility and an environment equivalent to ‘zero-trust,’ which goes counter to the cardinal premise of maintaining a steady domestic and international business environment.
The topic of tariffs is taught in a freshman-level micro-economics class and reinforced in other sophomore, junior and senior-year business classes. Itโs a sad commentary that Mr. Trump, et al, doesnโt recognize that imposing tariffs disrupts business supply chains, increases input costs, reduces gross margins, stockpiles unnecessary inventory, increases cash-flow risks and reduces profitability, let alone dramatically increases the cost of products, goods and services that consumers are forced to pay (American Economic Liberties Project, Aug. 1). …
Trump 2.0 administrationโs deregulatory stance on digital advertising and privacy regulations risks reducing consumer protections, which contradicts modern marketing principles that emphasize ethical data use and respect for customer privacy (Basis, Feb. 26). …
The Foreign Corrupt Practices Act (FCPA) requires publicly-held companies to maintain accurate records. Trumpโs 2.0 executive order paused FCPA enforcement, which undermines the foundational accounting principle of internal controls, accurate record-keeping, transparency, ethical conduct andโmost importantlyโincreases the risk of financial misreporting and corruption (Morgan, Lewis & Bockius LLP, Feb. 12). …
Many business school faculty members have explicitly opposed Trump-era policies, noting the administrationโs executive decisions reflect poor strategic and ethical judgment that contradicts the basic tenets of business organization and critical thinking (Harvard Business School).
Business leaders are convinced that principles such as free enterprise, accountability, transparency, conflict of interest, ethical governance, risk management, compliance, tariff trade practice, market stability and long-term strategic planning have been breached under Trump 2.0 leadership.
Throughout Yaleโs top Fortune 500 executive forum, CEOs expressed how the fundamental college-level business education principles Mr. Trump and his officials should have learned in college are being ignored.
The final resolve of the Fortune 500 CEOโs forum was a callโand pleaโto make America, America again.“
โ Steve Corbin, Professor Emeritus of Marketing, University of Northern Iowa