It's Time for the Corporate Resistance

In just 100 days, we're seeing the risk of irreversible damage to the U.S. economy

Know what sounds comforting right now? The S&P 500 steadily climbing past 6,000. The inflation rate trending down and real wages rising. The unemployment rate near a historic low and small business creation at a historic high. But, as they say, you don’t know what you got ’til it’s gone.

That was the economy President Biden handed over to President Trump 100 days ago. We still can return to such stability, but corporate leaders must advocate for it—publicly, collectively, and fearlessly.

Last year, even though big business in America was thriving, many CEOs still felt held back. They privately and publicly complained about the regulations coming from Lina Khan’s Federal Trade Commission and Gary Gensler’s Securities and Exchange Commission. They rejected President Biden’s accusations of “corporate greed” and “price gouging,” which particularly rankled after the resilience of the private sector helped lead America out of a pandemic-induced recession. And few executives got positions within the Biden administration, while President Trump offered them a seat in the Cabinet. So, a number of CEOs became champions for the dramatic change—and chaos—President Trump promised.

But since Trump’s “Liberation Day,” buyers’ remorse has crept in. Of course, anytime administrations change, businesses expect a conventional shift in policy. However, this president has taken a chainsaw to the foundation of our economy—dismantling trade, driving up the debt, and disincentivizing investment.

That’s why this is a moment for the business community to come together in opposition—not as newfound liberal lions, but as champions of American economic stability. Standing up against the president does not necessitate becoming a card-carrying Democrat. There is of course longstanding disagreement around regulation, spending and tax policy (even within the Democratic Party!). We should welcome a healthy debate on each. But we do not need to debate the importance of economic stability. And in just three months, three long-term risks to stability have surfaced.

The most immediate risk is to global trade. Wielding unchecked executive power, the President has upended U.S. trading relationships with the whimsical use and threats of tariffs. The effect on markets has been cataclysmic with major U.S. indices at one point down over 15%. Even if the President were to fully reverse course, irreversible damage has been done. They have sullied our reputation as a trading partner, jeopardizing America’s status as a place for investment. And they have spread uncertainty, hampering corporate leaders’ ability to make and execute long-term strategies.

Beyond the tariffs is the president’s fiscally unsustainable tax plan. No one expects CEOs to abandon their fiscal duty and clamor for tax hikes. But corporate leaders should insist on Washington making sound decisions for the long-term health of the U.S. economy. As designed, the president’s tax plan would raise the national debt by $4.6 trillion over 10 years, charting our debt to 214 percent of GDP within 30 years. At that point, a future Congress will have its hands tied and will almost certainly need to implement drastic tax hikes to pay off the runaway debt, let alone making growth-oriented investments. We could avoid that situation if today’s proposed tax cuts were paid for. But, instead of proposing and debating meaningful offsets, Senate Republicans are trying to fudge the math and violate Senate procedure to make the tax cuts look free. Any business knows that the minute you even start thinking about cooking the books, you’re in trouble.

Lastly, the President’s erratic attacks on the rule of law risk will drive up the cost of investment in a subtle but significant way. President Trump has attacked individual firms he opposes, driven the private sector into silence for fear of retribution, threatened political opponents, and questioned the legitimacy of the judiciary system. For decades, America has benefited from a safe harbor risk premium, meaning investors accept a lower rate of return because they view the U.S. economic system as safe and stable. If political instability raised the risk premium to even the level of the United Kingdom—a country few of us view as risky—equity wealth per household would drop $50,000 in ten years. We’re already seeing warning signs through a sell-off in the U.S. bond market and an increasing risk that the world discards the dollar as the preeminent reserve currency.

For too long, we have taken political stability as a given. It’s now a central economic issue. It’s time for CEOs to use their collective voice—not in unconditional endorsement of Democrats—but in defiance of an administration hellbent on on steering our economy to a point of no return. And we know, this President still listens to them.

Jamie Dimon proved it with the CEO-equivalent of a thirst trap.¹ A couple of weeks ago, he joined Fox Business to talk about the negative effects of tariffs on the U.S. economy. He wasn’t trying to impress a crush; he was trying to get the attention of the President. He succeeded. Later that afternoon, Trump admitted, “I watched Jamie Dimon and Maria Bartiromo’s show this morning, and he was very good.” He then heeded Dimon’s warning and announced a 90-day pause to most of the reciprocal global tariffs.

There’s still an off ramp from the road Trump is driving us down. He may take it if enough CEOs demand it. Once the economy regains stable footing, we can return to our regularly scheduled programming on regulation, spending, and taxes.

1. For my former bosses who are subscribers — this is when you post a flattering photo on social media to get attention.