Steve Beaman, CEO and 30 yr veteran of the financial industry, is a self-made millionaire who has spent his life in small business building companies and he calls President Elect Trump “America’s New CEO.”
Steve Beaman spoke to Politichicks about President Elect Trump’s threat to penalize American companies who move business overseas. You can hear the full interview here at KLRN Radio.
I understand President Elect Trump’s motivation for keeping jobs in America. We all want that. But we could get the same result by incentivizing US business to keep its business in America. There are many factors at play as to why US companies outsource work. I believe our new President should look at ways to incentivize, instead of penalize.
Mr. Beaman believes the President Elect is using a negotiating tactic straight out of his book, The Art of the Deal, by threatening a tariff in order to cause companies to rethink moving overseas.
One of the negotiating tactics that Trump is using — I want that phrase clear because I think it is a negotiating tactic — is to come out with this shot across the bow to threaten [businesses] with this import tariff.
Trump has also promised to cut corporate tax rates from 35% to 15% and to deregulate business to incentivize companies to stay in America, something Mr. Beaman approves.
The way to keep companies in the US is to incentive them to be here, not to threaten their leaving. Frankly, that sounds like something Hillary Clinton would have done which most of the free market economists would have fought heavily against.
In 1930 tariffs worsened the Depression. While some government regulation is necessary, regulatory burdens enacted through the alphabet soup of government bureacracy is strangling business. Mr. Beaman explains that these stifling regulations and taxes are causing companies to move. Cheap overseas labor cost is an added incentive to move.
With regard to America’s overall economic freedom, Mr. Beaman notes that in the year 2000, America was the third most free economy behind Hong Kong and Singapore. Today, thanks to the growth of government regulations under both parties, America has fallen to #13 on the list on most economic measures.
If America embraced a truly free market system, Beaman predicts growth rates would increase resulting in an organic wealth redistribution through innovation and development. The down side would be loss of the social safety nets.
One hundred years ago, charitable organizations used to provide social nets more efficiently and responsibly than government ever could.
People talk about terrors of child labor and horrors of business in the 1890s and 1920s — what they’re negating is the fact that technology today makes so much of that stuff [un]necessary….
I think we need to rebuild a nation of charitable giving. Phase social services into the charitable world. That would create the incentive to get out of poverty. Current programs institutionalizes poverty, making it impossible to get out of poverty.
If Trump cuts taxes, thereby providing true regulatory relief to private business, Mr. Beaman predicts America could enjoy a 4-6% rate of growth. The $20 trillion dollar debt amassed under Obama will not collapse the economy overnight, but it is putting a drag on economic growth.
A Revolution in Education
Historically, having children used to be an economic benefit. Nowadays, children are an economic drain. Today, the cost of college is a further disincentive. Mr. Beaman predicts a technological revolution in education. He says the days of brick and mortar universities learning are waning. He anticipates growth in online cooperative virtual education and away from the current factories of high learning.
Looking around the world at recent election of Trump, Brexit, and Italy’s recent vote, he observes that
people are rejecting the ‘large,’ trying to migrating back to the ‘small.’ As that happens in education, it will reset the very foundation of education….”
Technology makes that possible — you can’t constrain information anymore. The more we open up information, the less people will be dependent upon a ‘leader’ to disseminate that information. And that is in effect where the appearance of power comes from in Washington….”
To find out more about Mr. Beaman, go to www.SteveBeaman.com.