Friday, September 21, 2018

Trump is Bad at Business and Bad for Business

Trump has a track record of failed ventures and the tax cuts cannot hide the fact that this president has shown himself to be bad for business. Part of the reason people voted for Trump is because he described himself as a great business leader. A review of his business dealings and his almost two years in office dispel this myth.

Tax cuts and radical deregulation may have contributed to an economic uptick and low unemployment, but this does not bode well for the future. Spiraling deficits and the failure to invest in the future has put the country on a perilous track.  The federal government has slashed support for science and innovation, and failed to invest in infrastructure and the green economy. Trump's presidency has been marked by trade wars and an insane energy agenda that includes radical inefficiency.
The tax cuts alone are going to help create a trillion dollar federal deficit this fiscal year. Trump's failure to act on climate change could cost the country trillions of dollars every year due to  rising sea levels, wildfires, droughts, heat waves, crop failures, pollution and health care.

The consensus from many business leaders is that Trump has demonstrated himself to be profoundly both a business man and as the commander-and-chief.   As reported by CNN, the business elite have always seen Trump as an "amusing caricature...more showhorse than workhorse" For real business titans Trump is a "carnival barker...85% reality TV star, 15% businessman".

Corporate CEOs have mocked Trump's rejection of climate action but they cannot ignore the chilling effect he has had on sustainability. Last year Tesla's Elon Musk said that that Trump is bad for business. "Every now and then you hire the wrong CEO," Dallas Mavericks owner Mark Cuban said about Trump who he referred to as a "bad boss".

In September of this year the CEO of Morgan Chase Jamie Dimon questioned Trump's intelligence and his business acumen. As reported by CNN this is a, "reflective of the view held by lots of titans of industry and other very wealthy business people". Dimon said he is both smarter than the commander-and-chief and a better businessman. Dinon pointed out that he earned his money unlike Trump who got a "gift from daddy". 

Trump may not have earned his fortune but he has earned his reputation. Confabulation and outright
deceit define Trump's failed business strategy and his approach to the presidency. Trump lies about everything and his business is certainly no exception. To start with he never got an MBA from Wharton University. Trump likes to claim that he is a winner but he has amassed a track record of failures.

Trump's claim that he is a capable businessman is disproved by the wreckage of his long line of failed ventures. The list includes, TrumpMortgage, TrumpFinancial, Trump Hotels & Casino Resorts, Trump Shuttle, Trump Vodka, Trump Steaks, Trump Taj, Trump Castle, Trump Plaza, Trump Dubai, Trump Toronto and Trump Hollywood. 

A Judge ruled that Trump University was an outright scam and awarded a class action settlement to the hapless souls who were flimflammed.

He has failed so many times that no American bank will finance his ventures (cue Russian oligarchs). His purported links to financing from Russian oligarchs has likely not escaped Mueller's investigation and it may prove to be one of the factors that lead to his downfall.

At best Trump can be described as a brand builder. While this may lend itself to professional wrestling gigs or reality TV shows,  it is not the right stuff for a business leader, nor does it prepare him to be the President of the United States.

It is with good reason that corporations and business leaders are openly criticizing Trump. They have a vested interest in opposing him and being silent may not be an option. Those who are silent run the risk of paying a the price down the road.  

Corporations that openly support this president could  be making a big mistake that will haunt them. The CEOs of Fiat Chrysler, Johnson & Johnson, PepsiCo, FedEx, and Mastercard  may all rue the day in August they had dinner with Trump. Openly supporting this president could exact a reputational toll. Even being silent could expose a firm to reputational risk. Trump may occupy the Oval Office but once the Mueller team releases its findings he could soon find himself in a jumpsuit that matches his hair.

Some think that Trump is deliberately trying to dismantle government, destroy alliances and subvert democracy. Others think the current state of affairs is a byproduct of his bumbling incompetence. Either way, America will have to pay the price for the Trump presidency and the longer he stays in power the more expensive it will be.

Why Corporate Sustainability Leaders Must Resist Trump
Corporations Offering Hope this Unhappy Thanksgiving
Corporate Actions that Combat Trump's Climate Ignorance
Sustainability is Not Impervious to Trump
Sharing Sustainability Matters Now More than Ever
Which Side is Your Business On?
Businesses Support Sustainability and Oppose Trump
Business Leaders Advocate for Sustainability and Refute Trump
Corporate America Rejects Trump's Climate Ignorance
Trump Represents a Serious Risk Factor for Investors and Corporate America

No comments: