Name: GE's Jeff Immelt Dishes on Trump as President
Uploaded: 2019-12-19
Duration: 5 min 37 s
Description: GE CEO is cautious but hopeful.

 Jeff, you've had several meetings with President Trump in the White House. What's your take on how he's doing, especially when it comes to boosting the economy and American businesses? So I would say that one of the things that gets under covered, I think, Susie, is the fact that for the first time in your and my lifetime, a businessman is in the White House. That changes a lot. From the way he conducts meetings to the way he gets advice, President Trump is kind of like, I want to learn today about tech. Let's do a rapid fire. Let's bring the tech guys in. Let's bring the manufacturing team in. And so he very much interacts with people on a thematic basis the way a CEO would interact with people. How's he doing? It's as simple as this-- the focus areas of tax reform, of infrastructure, of regulatory reform. So the focus areas are exactly the exact right focus areas that the president of the United States should be working on right now. And again, it's just a function of how does he get these things-- how well does he get these things done. In the end, if you get those things done, this is going to be great. And if you don't, then we're going to be in the same place we were four years ago or eight years ago or 12 years ago. What do you think of President Trump's tax plan? Oh, look, I mean, it's kind of thin right now. But I think this notion of lowering the rate, eliminating deductions, territorial system, these are the right things. Right? This is what should happen in this country. We've been in an investment recession for 15 years. So without more capital expenditures, without more new business foundation, we're never going to go from 1 and 1/2% GDP to 3% GDP. It's as simple as that. What about delivering 4%? Do you see him doing that? Look, to me, it's all about capital investment. The consumer alone cannot do it. So we've got to get productivity. We've got to get Capex. In theory, the door that leads you to that is tax reform. So he's working on the right things. So at GE, are you starting to make tax moves now, planning that the corporate tax rate really might get down to 15%? Oh, so, Susie, what I would say is we're not counting on it happening, which is I don't think anybody's counting. It's been 40 years since we've had tax reform. There's huge barriers to this happening. But I think every bone in our body is saying, look, do this and it's going to mean more investment and better growth. Mm-hmm. We know that the tax cut depends on getting significant savings out of repealing Obamacare. Now GE's big in health care. What do you need to see as a CEO come out of that Trump plan that makes you feel is going in the right direction? I would like to see more authority in the states. I think we have to continue to drive more competition, better incentives. But the health care plan still needs a lot of work. It still needs a lot of work. Let's talk a little bit about trade. You were just talking at Georgetown University, and you said, we will not grow if we don't trade with people. And you also said that we have the most to lose with protectionism. So you're on the inside track with President Trump. Do you think he's moderating his stance on trade? Oh, I can't tell yet. But I would say, some of his public comments-- nothing he said to me personally-- said he's engaging more in kind of understanding some of the global dynamics. The basic thrust, Susie, that I put forth in my most recent comments is that the reason why we have big trade deficits in this country is because we haven't tried very hard. Really, if we had tried hard and still have had these trade deficits, I'd be more worried. But both business hasn't done its part and government hasn't created the right kind of context for exports and global trade. And here's GE, where it gets most of its revenues outside of the country. I mean, what worries you most about Trump trade policies that could impact all of your global businesses? Look, I always worry about trade wars and stuff like that taking place. I always worry about people react to rhetoric or actions. And that's a problem. The relationship with China, though, is quite important. We're the two biggest economies on Earth. We're likely going to be that way for a long time. I think it's important we have good bilateral relationships with China. You trust Trump is going to deliver good policies. Look, I think he's a deal guy. The president has two levers. One is military, the other one's economic. I have always felt like presidents didn't clarify that to the American public to say, I need both levers and I need to connect them to be successful. In other words, I need to use trade to really be able to have the kind of relationships around the world that are going to be beneficial to Americans. And so I think when it comes to China, I think President Trump has a unique perspective that we ought to connect the dots. One issue that comes up with trade is jobs. And I know you're a big believer in job creation. But how do you rationalize that the success of a lot of your global businesses sometimes means less jobs for Americans? GE is winning this game. We have an $8 or $9 billion business in China. We're a net exporter. So we export 6 billion from the US. We take 3 billion from China, ship that around the world. That's a winning play. I actually, I come back to what I said earlier, Susie. In globalization, I'm proud of where we are. I think there's a lot we can learn from other companies. In this period, there's things that other companies can learn from GE. 

GE's Jeff Immelt Dishes on Trump as President

Politics

Jeff, you had several meetings with President Trump in the White House. What's your take on how he's doing? Especially when it comes to boosting the economy and American businesses? So I was one of the one thing that gets undercovered. I think Suzy is the fact that for the first time and you're in my lifetime, a businessman is in the in the White House. That changes a lot, you know, from the way he conducts meetings to the way it gets advised. President Trump is kind of like I want to learn today about Tech. Let's do a rapid fire. Let's bring the tech guys. Let's bring the manufacturing team ed. And so he very much interacts with people on a thematic basis the way a CEO would interact with people. How you doing? It's a simple is this, um, the focus areas of tax reform of of infrastructure, of regulatory reform? So So the focus areas are exactly the exact right focus areas that the president I'd say she'll be working on right now and again. It's just a function of how does he get these things? How well does he get these things done in the end. If you get those things done, this is gonna be great, you know? And if you don't, then we're gonna be in the same place we were four years ago. Or eight years ago or 12 years. What do you think of President Trump's tax look? I mean, it's kind of thin right now, but I think this notion of lowering the rate eliminating deductions, territorial system, thes air the right things, right, Right. This this is what should happen in this country. We've been in an investment recession for 15 years. So without more capital expenditures, without more new business foundation, we're never gonna go from one and 1/2 percent GDP to 3%. It's as simple as that. What about delivering 4%? You see him doing that? Look, it's all to me. It's all about capital investment. That consumer alone cannot do it. So we gotta get productivity. We've got to get Catholics in theory. The door that leads you to that is tax reform. So he's working on the right things. So, g are you starting to make tax move now? Planning that the corporate tax rate really might get down to 15% So what I would say we're not We're not counting on. It happens. We're just I don't think anybody's you know. It's been 40 years since we've had tax reform. You know, there's there's a huge barriers to this happening, but I think every every every bone in our bodies saying, Look, do this and it's gonna mean Maur investment Better growth way We know that the tax cut depends on getting significant savings out of repealing Obama care. Now. Jeez, big in health care. What do you need to see as a CEO come out of that trump plan that makes you feel going in the right direction? I would like to Seymour authority in the States. I think we have to continue Dr More competition, better incentives. But you know, the health care plan still needs a lot of work. Let's have a little bit about You were just talking a Georgetown University and you said we will not grow if we don't trade with people. And you also said that we have the most to lose with protectionism. So you're on the inside Trump inside track with President Trump. Do you think he's moderating his stance on trade. Oh, I can't tell yet, but I would say, you know, someone's public comments? Nothing you said to me personally said. He's engaging Maura and kind of understanding some of the global dynamics, the basic thrust Susie that I put forth and my most recent comments Is that the reason why we have big trade deficits in this country? Because we haven't tried? Really? If we had tried hard and still have had these trade Jarvis's, I'd be more worried. We both business hasn't done its part, and government hasn't created the right kind of context for exports and global trade. And here's G E, where gets most of its revenues outside of the country. I mean, what worries you most about trump trade policies that could impact all of your global? But look, I always I always worry about trade wars and stuff like that taking place, you know, I always worry about you know, people. People react to rhetoric or actions on dhe. That's problem. The relationship with China, those quite important were the two biggest economies on earth. We're likely going to be that way for a long time. I think it's important we have good bilateral relationships with China. Trump is gonna deliver good policy. Look, I think he's a deal guy. President two lovers. One is military, the other one's economic. I always felt like presence didn't clarify that to the American public to say I need both levers and I need to connect them to be successful because I need to use trade t really be ableto have the kind of relationships around the world. They're gonna be beneficial to Americans. And so I think when it comes to China, President Trump has a unique perspective that we ought to connect the dots. One issue that comes up with trade is jobs, and I know you're a big believer in job creation. But how do you rationalize that the success of a lot of your global businesses sometimes means less jobs for Americans is winning this game way have on eight or $9 billion business in China were a net exporter, so we export six billion from the US We take three billion from China shipped out around the world. That's a winning play. I actually I come back to what I said earlier. Suzie and globalization, I'm proud of where we are, I think I think there's a lot we can learn from other companies in this spirit. Things the companies could learn, learn from G.