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Will Trump Be Good for Business?

Will Trump Be Good for Business?

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Monday, 27 June 2016 08:17 AM Current | Bio | Archive

In 1925, in a speech to the American Society of Newspaper Editors, President Calvin Coolidge famously said, “The chief business of the American people is business.”

Progressives today would deem such a pronouncement insensitive. In 2016 America, the chief business is feeling offended and demanding free stuff. Kids emerge from public schools hating patriotism, success, capitalism, wealth, exceptionalism, and business — everything that made America great.

Donald Trump wants to make America great again. Will he be good for business?
How’s business in America in 2016?
  • The Heritage Foundation ranks the U.S. 11th in worldwide economic freedom, between Denmark (12th) and the United Kingdom (10th).
  • In not one year since January 2009 has the GDP grown at 3 percent, the worst record in U.S. history.
  • More companies die every year than are born.
  • The labor-participation rate is 62.8 percent (94 million people out of the workforce).
  • National debt stands at $19.3 trillion (was $10 trillion in January 2009).
During Coolidge’s tenure, from 1923 to 1929, during which he drastically cut taxes, spending, and debt, America was extremely prosperous. GDP grew annually at an average rate of 3.5 percent. It was the first time in history that everyday Americans enjoyed leisure time.

Herbert Hoover, a rich, successful businessman, followed Coolidge. A one-term president, Hoover was a meddler, a disaster. Incorrectly reacting to the Wall Street Crash of 1929, he increased the size of government, raised taxes, and backed the Smoot–Hawley Tariff Act, which exorbitantly raised “prices” on over 20,000 imported goods. With all these missteps combined, the U.S. plunged into the early stages of the Great Depression. Franklin D. Roosevelt, Hoover on steroids, worsened matters.

Donald Trump, unlike Barack Obama and Hillary Clinton, loves and personifies business — and owns hundreds of them. He’s an unabashed capitalist who brags about his success and wealth. Trump hungers to restore America’s power (military and economic) in the world. These attributes make Trump good for business.

On the other hand, Trump wants to put (or threatens to put) tariffs on Chinese imports (the U.S. currently has more than 12,000 tariffs on imported goods). And, he wants to punish companies such as Carrier, Ford, and Nabisco for moving manufacturing plants outside of the U.S. This tyrannical side of Trump makes him bad for business.

To solve a problem, one must address it. Why would companies move off U.S. soil? The costs of doing business here are too high. Instead of punishing consumers and sellers, Trump should fix the real problems.

At 39 percent, America has the highest corporate tax rate in the world. On top of that, add the costs of EPA and Obamacare regulations. CEOs must optimize the wealth of their shareholders. Avoiding astronomical business expenses is part of that mandate.

Donald Trump must think of America as a shopping mall, where the business of the retail tenants is business. If Trump cannot work with Congress to make that mall a desirable place to conduct commerce, the tenants and their customers will walk — as they should. Bottom line: entice; don’t punish.

The lesson from Brexit, which Trump has praised, is that people crave individual liberty. They’ve had it with being controlled by a centralized, bloated, belligerent, unelected bureaucracy. Example: EU elitists in Brussels, in the name of phony global warming, want to ban electric teapots in the U.K. Seriously. The Brits, on June 23, 2016, voted to end that tyranny.

Can Trump make America great again? He needs a specific roadmap. America’s current brand is impotence, insolvency, inferiority, and tyranny. It needs to become power, prosperity, pride, and liberty. Trump has the right formula for the first-three brand attributes but not for liberty.

Accordingly, he can begin his presidency by reducing the size and scope of the IRS, EPA, HHS, and Education behemoths, thereby reducing costs and centralized control. Achieve that, and Carrier, Ford, and Nabisco will stay put, voluntarily. Entice; don’t punish.

Big government (including tariffs) is always bad for business and buyers. The model for Donald Trump is Coolidge, not Hoover.

Trump can’t make America great again until he makes America free again, according to our Constitution. If he accomplishes this, he’ll be great for business — in every way.

Marc Rudov is a branding adviser to CEOs, and is the author of "Be Unique or Be Ignored: The CEO's Guide to Branding." He is the founder of MarcRudov.com. For more of his reports, Go Here Now.
 

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Donald Trump wants to make America great again. Will he be good for business?
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2016-17-27
Monday, 27 June 2016 08:17 AM
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