Why CEOs Shouldn’t Be President

Not that Fiorina was much of a CEO — no one has offered her a  CEO job since she left HP in 2005 — but this to me screams out loud why being a CEO and a POTUS are two different things —

Carly Fiorina said Sunday that neither she nor Hewlett-Packard should be faulted for the sales of millions of HP printers in Iran when such business was prohibited by U.S. law.

Appearing on Fox’s Fox News Sunday, Fiorina said that despite being the CEO of HP when the Iranian sales took place via a third party, she was unaware of them. …

… “In fact, the SEC investigation proved that neither I nor anyone else in management knew about it…” she insisted, adding,  “…when the company discovered this three years after I left, they cut off all ties. The SEC investigated very thoroughly and concluded that no one in management was aware.”

A 2008 Boston Globe investigation found that, while U.S. companies were banned from selling goods to Iran, an Indian company in Dubai called Redington Gulf had sold HP printers there. They sold them so well, in fact, that HP had 41 percent market share in Iran by 2007. Redington Gulf obtained the printers through a European subsidiary.

Wallace asked Fiorina why HP had named Redington Gulf its “Wholesaler of the Year” award in 2003 if the company wasn’t aware of its sales to Iran, Fiorina again deflected blame.

It’s possible Fiorina wasn’t aware of how Redington Gulf made its sales, because that’s not the sort of thing a CEO has to worry about. Sales are sales.

(However, according to a 2004 article in Forbes, Fiorina’s HP was one of the companies that knowingly — or, at least, they must have known — shipped products to Dubai to be re-exported into Iran. Halliburton was another company named, of course. This practice was openly winked at even as the companies in question denied they ever sold goods to Iran.)

A POTUS has to have a more, shall we say, nuanced view of the world, in all of its complexities. And a POTUS is held responsible for things a CEO can get away with denying.

JP Morgan Chase CEO Jamie Dimon, not someone on my most admired list by any stretch, did say something insightful awhile back. When asked if a CEO’s skills would make someone a good President, he said, “It’s not sufficient. I think you have a whole ‘nother set of attributes. I think it’s really complex — politics. It’s three-dimensional chess.”

And if politics is three-dimensional chess, foreign policy is 12-dimensional chess. Businesses, even big corporations, operate within relatively narrow parameters – – cost, profit, cash flow, sales figures. CEOs don’t have to worry about whether selling widgets to France will cause a war with Spain. Presidents do.

Back when Mittens was running for POTUS, it struck me that he is probably very shrewd but not intelligent. By that I mean he seems to have a knack for calculating how to wring every dollar out of a business venture. But how does he understand history? How does he understand the causes of poverty, or the dynamics of race, or why certain wetlands have to be protected from development, or what it’s really like to be poor and have no health insurance? I very much doubt those things were even on his radar.

The purpose of a corporation is to make money for the investors. And if you have to wreck the environment or move jobs overseas and screw your employees in the process, that’s okay in the business world. The purpose of a government is to support fairness, justice and a decent standard of living for its citizens. And by “support a decent standard of living” I don’t mean hand out welfare, but to enable citizens to be self-supporting by preventing the malefactors of great wealth from exploiting the hell out of them, and to enable upward mobility through things like education and public health policies.

These two purposes are completely at odds with each other, and I don’t think the CEO presidential wannabees grasp that. Or, if they do grasp it, they don’t care. Winning the White House would be the ultimate “regulatory capture.” Why be content with getting industry-friendly executives appointed to federal regulatory agencies, when you can take over the entire executive branch?

Further, CEOs are tyrants. They exercise power largely through intimidation. David Corn wrote of Carly Fiorina,

At HP, Fiorina developed the reputation of a manager who knocked heads together—or who chopped them off. And there were massive layoffs during her tenure. In 2003, the company announced it would dismiss almost 18,000 people. (That year, the firm posted a $903 million loss on $56.6 billion in revenue.) When the outsourcing of jobs turned into a national political issue, Fiorina became the poster-girl for an industry campaign aimed at blocking any legislation that would restrict a company’s ability to can American employees in favor of workers overseas. She and executives from seven other tech companies issued a report that argued that any such measures would hurt the U.S. economy. The best way to increase American competitiveness, they declared, was to improve schools and, yes, reduce taxes. At a Washington press conference, Fiorina said, “There is no job that is America’s God-given right anymore. We have to compete for jobs.” The remark did not go over well with critics of outsourcing, who have ever since used it as an indicator of corporate insensitivity.

Note that candidate Fiorina already is promising to lay off government workers. It’s what she knows how to do.

Presidents, in contrast, have highly restricted powers. And they can’t fire Supreme Court justices. One of Fiorina’s excuses for her failures at HP is that the Board of Directors was hard to work with, and there may be some truth in that. But, my dear, have you seen Congress lately?

Nor do CEOs concern themselves with coming up with plans — that’s what the help is for. Note that Fiorina’s official campaign web site doesn’t have a “Carly on the Issues” section. It’s all about her resume, not her policy ideas. (Donald Trump has recently added a “positions” section to his, although the only two issues he addresses are 2nd amendment rights and immigration.)

(I am reminded of the Ultimate Donald Rumsfeld memo. This is what you get with a CEO secretary of defense.)

I’m not going to look at every presidential candidate website, but I will note that Bernie Sanders has an extensive issues section that would take someone a while to read.

Right now Trump and Fiorina are one and two in the Republican polls. At least Scott Walker seems out of the running; that’s some comfort.

Sunday Funnies

Laugh or cry:

Donald Trump doesn’t think the 14th Amendment would stand up in court.

There are signs Jeb!’s campaign is faltering, and who else would move into the #2 position but … Ben Carson?

This week Carson said that there’s no “war on women”; the war is on what’s inside of women. After this statement was met with much head scratching and many WTFs, he said this:

Of course, since this is a Republican presidential primary, Carson was alluding to abortion. But he left out a relatively simple explanation for his “real war” by leaving out what he said previously, which was that the war he is concerned about is on “that cute little baby inside of them.” (He also said “we need to re-educate the women” so they rethink their approach to the procedure.)

More WTFs. (Re-educate this, you creep.)

The Monster That Lee Atwater and Karl Rove Made

Frank Luntz got some Trump supporters together for a focus group. I believe this is what’s called a “cult of personality.”

Many sounded like relations of an ill patient, furious that all the previous doctors have botched a test or fumbled the scalpel. To them, Trump actually is the real-deal fixer-upper, and he is going to make America great again.

“We know his goal is to make America great again,” a woman said. “It’s on his hat. And we see it every time it’s on TV. Everything that he’s doing, there’s no doubt why he’s doing it: it’s to make America great again.”

The focus group watched taped instances on a television of Trump’s apparent misogyny, political flip flops and awe-inspiring braggadocio. They watched the Donald say Rosie O’Donnell has a “fat, ugly face.” They saw that Trump once supported a single-payer health system, and they heard him say, “I will be the greatest jobs president God ever created.” But the group—which included 23 white people, 3 African-Americans and three Hispanics and consisted of a plurality of college-educated, financially comfortably Donald devotees—was undeterred.

At the end of the session, the vast majority said they liked Trump more than when they walked in.

“You guys understand how significant this is?” Luntz asked the press breathlessly when he came back into the room behind the glass. “This is real. I’m having trouble processing it. Like, my legs are shaking.”

It’s easy to psychoanalyze this crew and call them authoritarians, but it’s also the case that they’re really disgusted with other Republicans.

Much of Trump’s support in the room seemed to stem from a weakness in the Republican party. The 2014 midterms did not usher in the conservative renaissance Republicans expected. Obamacare has still not been repealed, Congress is looking less likely to override a veto on the Iran deal, and there are still 11 million illegal immigrants in the United States.

The group of 29 went around the room, each supplying a single adjective for the legislative body that let them down after the 2014 elections. Congress “does nothing.” It’s “too old.” “Useless.” “Lame.” “Inept.” “Wrong party.” “Cocktail party.” “Gridlock.” “Costly.” “Sold out.” “Sucks.” “Douchebags.”

Then, the group did the same for Trump. This time: “Tough.” “Businessman.” “Great.” “Successful.” “Not afraid.” “Leader.” “Has guts.” “Charismatic.” “A true American.” “Kicks ass and takes names.”

And again, we can assume this crew is not exactly cracking the IQ ceiling. But lo … Josh Marshall tells us it is possible that Trump really could end up with the Republican nomination. With such a divided field, just 25 to 30 percent of the primary vote could get Trump into the general election.

Next Step: Call Luca Brasi

As I predicted, The Donald is still on top of the GOP presidential polls, including in some early primary states. If a bunch of state primaries were held today, Trump would be the GOP nominee.

Joan Walsh thinks she has found the tidbit that will end Trump: A 1989 biography with details of brutality toward his then-wife, Ivana, and then Trump’s lawyer went ballistic on Politico writers who were using the details in the story. I don’t see how brutality toward a wife or a nasty lawyer will register as negatives with Trump supporters, though. It’s also the case that Ivana has disavowed the story, which makes it kind of a non-starter.

Reince and Co. are going to have to get tough and make The Donald an offer he can’t refuse. If there is such a thing.

The GOP Needs a Better Base

Do y’all remember William Bennett, the guy who made a good living as a public morality scold until it was discovered he had millions of dollars in gambling debts? He hasn’t entirely gone away, but he gets less attention than he used to.

You might remember that Bennett was so disappointed that the American people weren’t more outraged by the Clinton-Lewinsky that he wrote a whole book about it, The Death of Outrage. He saw President Clinton’s popularity as a sign that the American public was morally depraved. (Big Bill averaged a 61 percent approval in his second term, and his high point in December 1998 was 73 percent, according to Gallop.)

I thought of Bennett this morning when I saw this piece at National Review, whining about the Republican base. Kevin Williamson calls that part of the base that is putting Donald Trump at the top of the GOP polls the WHINOS, because they whine about the Republican establishment.

What’s generally misunderstood on the left is that the tea-party movement did not arise as an alternative to the Obama-Reid-Pelosi Democrats but as an alternative to the Bush-McConnell-Hastert Republicans, who were judged to have spent too much, warred too recklessly, and — most significant — to have been too ready to make themselves complicit in the bailouts. …

…You know the RINO — Republican In Name Only — but you may be less familiar with the WHINO. The WHINO is a captive of the populist Right’s master narrative, which is the tragic tale of the holy, holy base, the victory of which would be entirely assured if not for the machinations of the perfidious Establishment. Never mind the Democrats, economic realities, Putin, ISIS, the geographical facts of the U.S.-Mexico border — all would be well and all manner of things would be well if not for the behind-the-scenes plotting of Mitch McConnell, John Boehner, and their enablers, who apparently can be bribed with small numbers of cocktail weenies. The WHINO is a Republican conspiracy theorist, in whose fervid imaginings all the players — victims, villains — are Republicans. Barack Obama? Pshaw. The real enemy is Jeb Bush….

…Which is to say, the WHINO loves Trump not because Trump confounds the Democrats or because he constitutes a serious threat to a Democratic victory in 2016, but because he confounds the Republicans and constitutes a serious threat to a Republican victory in 2016.

Williamson manages to write this whole column without dealing honestly with the one issue that is earning Trump so much WHINO love, which is immigration. I well remember even during Dubya’s first term, when he was still coasting on the false impression that he actually knew what he was doing about terrorism, there was grumbling on rightie blogs that he was soft on immigration. The fact is, the Republican base is cemented together with a whole lot of nativism, along with racism and resentment of anyone comfortable with diversity. It was the Right, not liberals, who lashed out and killed Dubya’s immigration reform efforts.

The GOP establishment thought the baggers were grand when they could be mobilized to shut down town hall meetings about Obamacare. Then they ran Jeb up the flagpole, and the baggers failed to salute. Instead, they are flocking to Trump, who is speaking their language and throwing them red meat in quantity. Because, ultimately, that’s all baggers want. They aren’t interested in actual government policy. They want leaders and spokespeople who will validate their bigotries and give voice to the howling, ugly hate and demented envy that gnaws at their souls.

And now, having chased anyone who actually cared about governing, or even America, out of the party, the GOP is faced with a base that no longer understands, or cares, how the game is played. And the GOP establishment is beginning to realize they no longer control the Frankenstein’s monster they cultivated all these years.

He’s Out of Control

Yep, the Donald is out of control, ripping everyone who looks at him funny whether they are Republicans or Dems. And he has vaulted to the top of the latest GOP presidential poll. And such members of the rightie intelligentsia as Rush, Laura Ingraham and Ann Coulter are cheering him on.

Here’s a news story explaining why Republicans shouldn’t worry about the Trump surge. Ooops, it’s dated July 2. Maybe they should worry.

The Donald is likely to flame out before formal debates begin, but if he doesn’t, we should be in for some fun. By the Republicans’ own rules they’d have to let him in the debates, and he’s likely to turn them into the best reality show ever.  Better than Bridezillas, even.

Some in media are questioning whether to take him seriously, or whether he’s just messing with our heads. Frankly, I think he takes himself seriously.  I think he absolutely believes he should be emperor of the world. And I think he absolutely ought to be on heavy medication. Otherwise, why would he be making such a fool of himself? What’s in it for him, really?

The GOP establishment must be frantic to find a way to muzzle him. Good luck with that, guys.

Dumping the Donald

I hope everybody had a lovely 4th of July and will enjoy some barbeque this weekend.

NASCAR has joined the Donald Trump pile-on and has announced it has changed an awards banquet venue because of his remarks about Mexicans. It appears The Donald is genuinely surprised by this. Yesterday he said he knew campaigning could be rough, but he didn’t think it would be this severe.

“I knew it was going to be bad because I was told this. All my life I have been told this: If you are successful, you don’t run for office,” Trump said in an interview onFox News, addressing the recent spate of businesses that have severed their relationships with his brand. “I didn’t know it was going to be quite this severe, but I really knew it was going to be bad.”

See, all these companies — NBC, Macy’s, Serta, etc. — are turning on The Donald because he is successful. And how did he get successful?

Trump was born in New York City in 1946, the son of real estate tycoon Fred Trump. Fred Trump’s business success not only provided Donald Trump with a posh youth of private schools and economic security but eventually blessed him with an inheritance worth an estimated $40 million to $200 million. It is critical to note, however, that his father’s success, which granted Donald Trump such a great advantage, was enabled and buffered by governmental financing programs. In 1934, while struggling during the Great Depression, financing from the Federal Housing Administration (FHA) allowed Fred Trump to revive his business and begin building a multitude of homes in Brooklyn, selling at $6,000 apiece. Furthermore, throughout World War II, Fred Trump constructed FHA-backed housing for US naval personnel near major shipyards along the East Coast.

In 1974 Donald Trump became president of his father’s organization. During the 15 years following his ascension, he expanded and innovated the corporation, buying and branding buildings, golf courses, hotels, casinos, and other recreational facilities. In 1980 he established The Trump Organization to oversee all of his real estate operations.

Trump eventually found himself in serious financial trouble. In 1990, due to excessive leveraging, The Trump Organization revealed that it was $5 billion in debt ($8.8 billion by some estimates), with $1 billion personally guaranteed by Trump himself. The survival of the company was made possible only by a bailout pact agreed upon in August of that same year by some 70 banks, allowing Trump to defer on nearly $1 billion in debt, as well as to take out second and third mortgages on almost all of his properties. If it were not for the collective effort of all banks and parties involved in that 1990 deal, Trump’s business would have gone bankrupt and failed.

In other words, it didn’t take exceptionally hard work or brilliance.

In our culture, to paraphrase a line from Michael Shaara, there’s nothing as close to a god on earth than a billionaire CEO. I’m sure The Donald has gotten away with saying anything he wanted to say and being the biggest asshole he could be, and nobody has dared correct him. And at this point he’s turned into a caricature of himself.

FYI, the Donald is currently at the top of the GOP presidential contender polls, at 13.6 percent. Jeb Bush is second, at 13.3 percent. The next three are Ben Carson, Marco Rubio and Rand Paul. Scott Walker has fallen to sixth place, at 8 percent. Republican voters relate to mean and stupid, apparently.