Gary D. Cohn, former director of the National Economic Council and current vice chairman of IBM, shares his insights on the Federal Reserve's interest rate decisions and their economic impacts. He discusses the rising unemployment rates amid a recovering job market and reflects on his journey from trading to top executive roles, emphasizing adaptability. Cohn also addresses the importance of continuous learning in investing and delves into the role of technology in monitoring employee behavior, particularly during crises like the COVID-19 pandemic.
Building a world-class team of experts is crucial for effective economic policy management.
Transparency, communication, and crisis management skills are essential in problem-solving and achieving policy reform.
The Tax Cuts and Jobs Act aimed to boost economic growth and incentivize small businesses through comprehensive tax reform.
Networking with influential individuals can greatly impact career success and provide valuable connections.
Deep dives
Life in the White House and the Tax Cuts and Jobs Act
Working in the White House was a fascinating and intense experience. The days were long and filled with various responsibilities, including briefing sessions, meetings with staff and senior officials, and engagement with Capitol Hill. As Chief Economic Advisor, my role involved managing the administration's economic policy agenda and spearheading initiatives like the Tax Cuts and Jobs Act (TCJA). The TCJA was a comprehensive tax reform that aimed to boost economic growth and incentivize small businesses. The process of developing the TCJA began in December 2016, and a top-notch team was assembled to work on it. We aimed to fix a tax policy that hindered growth, penalized investment, and deterred US corporations from investing in the country. It was an opportunity to make impactful changes and drive policy reform.
Crisis Management and Problem-Solving
My experience in crisis management at Goldman Sachs prepared me well for handling challenges and problem-solving in the public sector. It was essential to take ownership of problems, gather all the necessary facts, and articulate the truth to the best of our knowledge. Transparency and communication were key in identifying solutions and rectifying issues. Every problem was treated as an opportunity, and understanding the perspectives of different stakeholders was crucial. Being able to navigate complex situations, resolve disputes, and anticipate potential challenges were the skills honed in addressing crisis situations. I strived to stay on the same page as the ultimate decision-maker and work with the team to drive solutions.
Forming a World-Class Team in the White House
One of my first steps in the White House was building a world-class team of experts to manage economic policy. I sought out highly skilled professionals across various domains who could contribute their expertise and help drive the administration's agenda. With the guidance of trusted colleagues, I hired individuals renowned in their respective fields. This team included Deputy Jeremy Katz, who played a crucial role in assembling the best talent available. I was grateful for their dedication, as joining the White House often meant leaving prestigious positions for a lower salary. Their commitment to serving the nation and their belief in the administration's vision were inspiring.
Developing the Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act (TCJA) was a significant legislative achievement and a key focus of the administration. The process began in December 2016, shortly after I joined the White House as Chief Economic Advisor. Our goal was to reform the tax code and address issues that hindered economic growth and opportunity. The TCJA was a comprehensive package that went beyond mere rate adjustments. It aimed to incentivize small businesses and create a more favorable environment for investment. Through extensive discussions, analysis, and engagement with stakeholders, we crafted a plan that would drive economic growth and provide relief to American families and businesses. The TCJA was ultimately signed into law and marked a substantial overhaul of the tax system.
The Importance of Networking in Career Success
Networking with the right people can greatly impact one's career success, as they can provide guidance, support, and valuable connections. The speaker emphasizes the significance of knowing influential individuals who can assist in hiring the right talent and making a meaningful impact. Utilizing the experience and knowledge of those who understand the intricacies of the system can be invaluable.
The Peaceful Transition of Power and the Importance of Effective Teams
The speaker highlights the often overlooked phenomenon of the peaceful transition of power. They emphasize the significance of assembling a competent and cohesive team, even when its members are unfamiliar with one another. The speaker credits the team they worked with, composed of individuals who had previous experience in executive branches, for providing a competitive advantage and ultimately achieving their goals.
The Unique Nature of Tax Reform and Policy Decisions
The podcast explores the intricacies of tax reform and how different policy positions are crafted. It discusses the contrasting views within the White House and the House of Representatives on the issue of a border adjusted tax system. The importance of finding common ground and establishing agreement among key decision-makers is highlighted as crucial for successful policy implementation.
The Tax Cuts and Jobs Act - Impacts and Renewal
The podcast delves into the Tax Cuts and Jobs Act (TCJA) and its impacts on the economy. It challenges the perception that the TCJA primarily benefited the wealthy by presenting data that suggests otherwise. Furthermore, the potential renewal of the TCJA in 2025 is discussed, with the speaker expressing a belief that a significant portion will be renewed, based on the legislation's positive effects on tax revenues and incentives for businesses.
Bloomberg Radio host Barry Ritholtz speaks with Gary D. Cohn, former director of the National Economic Council. He is an internationally recognized expert on the financial markets, global economy, economic policy and US politics. Cohn is vice chairman of IBM, working in partnership with IBM’s executive leadership team on a wide range of business initiatives and external engagement. He served as assistant to the president for economic policy and director of the National Economic Council from 2017-2018. Cohn was the chief economic adviser to President Donald Trump, managing the administration’s economic policy agenda.
